Elon Musk is the new version of the butterfly effect: writes a tweet and either collapses or raises the crypto market. The impact of the South African magnate and investor is not disputed in the world of cryptocurrencies. There have been several occasions when has transformed the industry with a couple of sentences, causing some virtual currencies to reach historic highs or sink to their lowest levels.
It should be noted that Musk their fickle positions are comparable to the volatility that accompanies digital assets, but it is undeniable that it has left an indelible mark on the world of tokens.
To clear up any doubts about the “Musk effect” In digital currencies, we review six key moments in the love/hate relationship between Musk and cryptocurrencies.
PREPARE YOUR WALLET1. Bitcoin is as bullish as fiat money
Bitcoin (BTC) adds years grabbing attention on social mediaOne of the first to be seduced was the then CEO of Twitter (now X), Jack Dorsey, who mid 2020 He added digital currency to his biography, establishing himself as one of its biggest proponents, but the real promoter was yet to come.
Also in 2020, Musk made his appearance, tweet that Bitcoin was "almost as 'bullshit' like fiat money," practically causing a tsunami on that social network. While cryptocurrency followers quickly denied them, challenged him to debates or insulted him with their best French, Musk almost a month later gave a twist, update your X bio to “#bitcoin”.
The change of Musk's narrative Regarding Bitcoin, in less than a month it did not leave anyone indifferent on the social network, nor the market, which moved quickly, and was the appetizer of what is currently one of the most influential figures in the crypto market.
So while Dorsey was the first to position the #bitcoin hashtag in the mainstream X, the South African billionaire positioned himself as a sort of champion of cryptocurrencies, and today he exercises his power like a leader.
2. A Musk favorite invests in Bitcoin
La Musk's metamorphosis Regarding Bitcoin, it was no small feat. Less than two weeks after adopting the digital currency as its bio on X, one of its most recognized companies, the electric car company Tesla, announced a mega investment of USD 1.5 billion in BTC and its inclusion as a payment currency.
The news spread like wildfire and el bitcoin price recorded a new all-time high, shooting up to USD 44,000 in a matter of minutes and heading towards USD 58,000.
With that move, Musk became the true emperor of the crypto world. Analysts and followers crowned him thus, and predicted the beginning of a golden age for digital currencies, but as with everything in life, nothing was set in stone, and Musk's fickle nature would soon bring surprises.
3. A new star is born and it's called Dogecoin
While Musk's affection for Bitcoin seemed strong, the reality is that the mogul already had a first love, DogeCoin (DOGE). Crypto, which started as a joke, In February 2021, it was declared by the businessman as “the people’s cryptocurrency”, triggering the DogeCoin price to the stratosphere.
Again with a tweet, Musk managed to make another crypto, this time DOGE, climb more than 50% in just a few hours.
El monitoring Musk's X account It practically became a new job in the investment industry, because with each tweet, DOGE grew and grew.
Musk's ability to influence the market also generated rejection. In 2022, he and Their companies were sued for USD 258,000 billion, accused of "manipulate the Dogecoin pyramid scheme", but two years later the claim expired.
4. Forward and backward
That said, Musk is not exactly a typical or predictable entrepreneur.Although he praised Bitcoin in 2020, a few months later, in May 2021, he reversed course. In a tweet, he announced that Tesla would no longer accept Bitcoin for vehicle purchases and hinted that he would divest his Bitcoin reserves, citing environmental concerns.
The notice caused the price of bitcoin would crash. While Musk re-posted to X to calm concerns, the automaker ultimately sold all the crypto in its possession.
Despite this, Musk's ambivalence towards virtual currencies remains, because another of his famous companies, SpaceX, has a stack of cryptocurrencies, where Bitcoin has a prominent presence with 8,285 BTC.
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5. SNL's nightmare for DOGE
As seen, Musk is the rockstar of social media And in May 2021, he showed his mettle. On that date, he appeared on the American series Saturday Night Live, so Dogecoin fans anticipated that the businessman would give it another go. a boost to crypto, but in keeping with his fickle nature, he sunk it by calling it "a scam."
This statement caused a drop of more than 30% in the currency during the show, and highlighted that just as Musk shoots his current favorite to the moon, he can also make her reach the subsoil with just a word or a phrase and without giving an explanation.
