Have you ever noticed before, when Elon Musk tweets about crypto, crypto prices move? This is how the Tesla and SpaceX billionaire put the crypto market on a roller coaster this month.
Just last week, Elon Musk tweeted that he had spoken with the team of Doge developers about how to make the cryptocurrency more efficient. The impact was predictable as it sent the price of the cryptocurrency, Dogecoin to the moon by 30%.
It may be a coincidence or showed how influential he is in the crypto market. This lead to people raise questions about the solidity of a market that can so easily be manipulated – by tweets. Musk’s tweets may not necessarily be posted for his own financial gain, however, they can greatly affect investors in cryptocurrency.
He seemed to tweet about cryptocurrency a lot in the past few weeks. Last Wednesday, he tweeted that Tesla would no longer be accepting bitcoin as payment due to environmental concerns about its heavy energy use. As predicted, the price of bitcoin dropped around 15%.
Furthermore, he suggested that Tesla would sell its cryptocurrency holdings (we aren’t sure either he had already sold it). With a single tweet, he made the price of bitcoin drop even lower to its lowest level since February. He then tweeted that Tesla has not sold bitcoin which seemed to halt the drop.
Here’s how Elon Musk’s tweets have moved crypto prices
Some blockchain investors expressed their concern about the trend where it’s quoted as “very scary and deeply irrational.” Crypto market investors are not comfortable with how one person or small entity being able to manipulate the market.
“I guess that’s where we are in crypto right now. It’s not great, that’s for sure,” Lumin, the Doge developer said.
Whatever the rationale, the billionaire’s tweets greatly impact crypto prices – in less than 280-characters. It raises uncomfortable questions about price manipulation.
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