How a Single Elon Musk Tweet can Change Cryptocurrency Prices

Table of Contents

1. The Elon Musk Tweet: An Introduction
2. The Elon Musk Tweet Effect
3. Elon Musk as a Cryptocurrency Influencer
4. Other Notable Cryptocurrency Influencers
5. The Elon Musk Tweet: An Analysis of How People Influence Cryptocurrency
   

The Elon Musk Tweet: An Introduction

Elon Musk as a name holds weight in any conversation: the 50-year-old CEO of Space X and Forbes-listed billionaire has come a long way from being a student at the University of Pennsylvania to the second richest person in the world.

In 2021, the Dogecoin meme coin soared in popularity because of a singular tweet released by the serial entrepreneur and billionaire. The Tweet which said, "Doge Barking at the moon" saw Dogecoin triple in a space of 24 hours. 

In today's article, I will be discussing how Elon Musk's singular tweet made all the difference in just 24 hours, the way Elon Musk influences the cryptocurrency market and how the billionaire and other people influence cryptocurrency.

The Elon Musk Tweet Effect

Elon Musk has solidly supported Dogecoin this year: the meme coin which started as a joke between two engineers in the year 2013 garnered a lot of support from the CEO and crypto enthusiast.

In February 2021, Elon Musk tweeted an instructional video on YouTube for Dogecoin while renowned US musician and rapper, Snoop Dogg shared a picture of the Dog that inspired Dogecoin with the caption "@elonmusk." The tweets were shared over the weekend, and by the next Monday, Dogecoin had become one of the top cryptocurrency tokens in terms of market value.

In October 2021, Elon Musk responded to an online survey which said that nearly one third of cryptocurrency owners in the US own Dogecoin. He tweeted, " Lots of people I talked to on the production lines at Tesla or building rockets at Space X own Doge. They aren't financial experts or Silicon Valley Technologists. That's why I decided to support Doge-it felt like the people's crypto."

This tweet got a response from Dogecoin's co-creator Billy Markus explaining the speed, simplicity and beauty of the memecoin. This tweet amongst others has encouraged more people to buy Dogecoin, not just because they know about cryptocurrency but because they believe in Elon Musk and his brand.

Elon Musk As A Cryptocurrency Influencer

The Space X and Tesla CEO has said that he owns only three cryptocurrency tokens: Bitcoin, Ethereum and Doge coin. However, whenever he tweets a picture of his Shiba Inu Dog, the prices of Shiba Inu start to rise. 

This is to show that any comment from Elon Musk is taken very seriously by crypto enthusiasts. If he indicates interest in a cryptocurrency token, everyone wants to buy the token. If he makes a negative comment about any cryptocurrency token, it is most likely that many people would not want to buy.

In November 2021, Bill Lee who is the founding partner at West Coast Holdings responded to a tweet that discussed reducing dependence on cryptocurrency exchange platforms. This is because investors cannot claim ownership of assets in a digital wallet until they own the keys to that wallet. Elon Musk tweeted only one word as a response, "Exactly."

It is likely that in the months to follow, many crypto enthusiasts will see reason with that tweet and reduce participation on cryptocurrency exchange platforms. This is the beauty of influencer marketing: all it takes is a comment from a powerful influencer to change consumer behavior.

Other Notable Cryptocurrency Influencers

Elon Musk is not just a serial entrepreneur and billionaire, he is one of the greatest cryptocurrency influencers in the world. There are other notable cryptocurrency influencers in different fields: I will be mentioning these influencers and highlighting their impact in this article.

Jack Dorsey, the founder and CEO of Twitter is a staunch supporter of the Bitcoin cryptocurrency. In 2020, his digital payment based company Square bought 4,709 bitcoins for $50 million. He has over the years, tweeted actively about Bitcoin and influenced people indirectly to buy the coin.

Vitalik Buterin is known for being the co-founder of one of the biggest cryptocurrency tokens, Ethereum. He has over a million followers on Twitter where he shares commentaries, articles and reviews on cryptocurrency and the blockchain.

GirlGoneCrypto, real name Lea Thompson is a cryptocurrency blogger, YouTuber and video producer. The blogger has over 24,000 followers on Instagram and an active Twitter community. She posts entertaining cryptocurrency content on social media and hosts interesting discussions on the blockchain and cryptocurrency.

The Elon Musk Tweet: An Analysis of How People Influence Cryptocurrency

The cryptocurrency network is built by people: from the developers, the software engineers, financial analysts, app testers, technical writers, etc to the people who think it is worthwhile to put their money in a particular coin. People invest in crypto not just for profit, but for the togetherness that it provides and the sense of community.

Elon Musk makes all of us understand that when someone is able to grow from being a student in a foreign country to a world-recognized billionaire, they create a positive brand image of, "If this person can achieve this much, I trust their judgment."

Anyone can consistently share content on cryptocurrency, but getting people to believe in your brand and trust your opinion involves a lot of hard work and resilience. People are not just interested in cryptocurrency, but Elon Musk as an individual: this is why, for better or for worse, a single tweet from Elon Musk can change the prices of cryptocurrency tokens.

There are numerous cryptocurrency influencers and they definitely have different methods with which they share their opinions on the cryptocurrency market. If you are interested in learning about cryptocurrency, you should follow them on social media. However, when you want to buy any coin, do your own research.