Elon Musk's most popular tweets that influenced the cryptocurrency market
Elon Musk's tweets have had a significant impact on the cryptocurrency market, influencing the value of various cryptocurrencies. Some of his most influential tweets include:
Elon Musk's tweets have had a significant impact on the cryptocurrency market, influencing the value of various cryptocurrencies. Some of his most influential tweets include:
"Bitcoin is my safe word": In December 2021, Musk's positive tweet about Bitcoin being his "safe word" led to a substantial increase in the value of Bitcoin
January 2022: Elon Musk shows he’s a Bitcoin supporter.
In January 2022, Elon Musk changed his Twitter bio by adding “#bitcoin” which caused the Bitcoin to increase its value by 20%.
"Dogecoin to the Moooonn": A Twitter poll from February 5, 2021, where Musk wrote "Dogecoin to the Moooonn," resulted in a 35% surge in the value of Dogecoin
Moreover, the price of Dogecoin raised by more than 500% after he tweeted that it was his favorite cryptocurrency. For this he is also known to be the “Dogefather” or “King of Dogecoin”. He also tweeted that SpaceX will accept Dogecoin payments which again, made the value of one of his cryptocurrencies raise largely.
Tesla's acceptance of Bitcoin: Musk's tweet in June 2021, stating that Tesla would begin accepting Bitcoin once there's confirmation of reasonable (~50%) clean energy usage by miners, caused the price of Bitcoin to jump
DOGE for merch: Musk's tweet about Tesla accepting DOGE for merchandise led to a 43% surge in the value of Dogecoin
Examples of the negative impact of Elon Musk’s tweets on the crypto market
Elon Musk can have a positive but also a negative impact on the crypto market by creating its own up and downs. For instance, after his presence on Saturday Night Live in May 2021, the Dogecoin’s value fell 34%. This was shocking considering that it was predicted by many crypto enthusiasts that it would increase the Dogecoin’s value to US$ 1.
There are three types of market efficiency: weak efficiency related to market data (prices and transaction volumes), semi-strong efficiency related to all public information (company accounts, analyst reports, etc.) and strong efficiency (all public as well as private information).
Given the market reaction after Elon Musk’s tweets, the market is definitely efficient in the semi-strong sense. By observing the market reaction before Elon Musk’s tweets, we may wonder if the market is also efficient in the strong sense…
"Bitcoin is my safe word": In December 2021, Musk's positive tweet about Bitcoin being his "safe word" led to a substantial increase in the value of Bitcoin
January 2022: Elon Musk shows he’s a Bitcoin supporter.
In January 2022, Elon Musk changed his Twitter bio by adding “#bitcoin” which caused the Bitcoin to increase its value by 20%.
"Dogecoin to the Moooonn": A Twitter poll from February 5, 2021, where Musk wrote "Dogecoin to the Moooonn," resulted in a 35% surge in the value of Dogecoin
Moreover, the price of Dogecoin raised by more than 500% after he tweeted that it was his favorite cryptocurrency. For this he is also known to be the “Dogefather” or “King of Dogecoin”. He also tweeted that SpaceX will accept Dogecoin payments which again, made the value of one of his cryptocurrencies raise largely.
Tesla's acceptance of Bitcoin: Musk's tweet in June 2021, stating that Tesla would begin accepting Bitcoin once there's confirmation of reasonable (~50%) clean energy usage by miners, caused the price of Bitcoin to jump
DOGE for merch: Musk's tweet about Tesla accepting DOGE for merchandise led to a 43% surge in the value of Dogecoin
Examples of the negative impact of Elon Musk’s tweets on the crypto market
Elon Musk can have a positive but also a negative impact on the crypto market by creating its own up and downs. For instance, after his presence on Saturday Night Live in May 2021, the Dogecoin’s value fell 34%. This was shocking considering that it was predicted by many crypto enthusiasts that it would increase the Dogecoin’s value to US$ 1.
There are three types of market efficiency: weak efficiency related to market data (prices and transaction volumes), semi-strong efficiency related to all public information (company accounts, analyst reports, etc.) and strong efficiency (all public as well as private information).
Given the market reaction after Elon Musk’s tweets, the market is definitely efficient in the semi-strong sense. By observing the market reaction before Elon Musk’s tweets, we may wonder if the market is also efficient in the strong sense…