How does Elon Musk control the price of Bitcoin with his sexy tweets?
Recently, with the CEO of SpaceX and TeslaElon Musk, a frequent recurrer of Bitcoin and other cryptocurrencies almost continuously, things have become very exciting on cryptocurrency exchanges, as Tweet One of the famous entrepreneur and billionaire has become a major influence in moving the prices of these currencies in the trading exchanges, whether up or down, all through only 280 characters.
First: How does Elon Musk affect the price of Bitcoin with his tweets on Twitter:
Although the tweets of the entrepreneur (Elon Musk) on his account on the Twitter platform are not necessarily understood to be for his own financial gain according to many followers, they can greatly affect investors in cryptocurrency exchanges, and they also raise questions. A lot about the strength of the cryptocurrency market, which has proven to be very fragile, due to the fact that it was affected by the fall in its prices or sharply rising in just one tweet.
Where Elon Musk’s tweets about cryptocurrencies in the past few weeks have had a great impact, especially on Bitcoin, on Wednesday of the week before last, he tweeted: that Tesla electric cars Has stopped accepting bitcoin As a method of payment for the purchase of its cars due to environmental concerns related Using electric power Heavily in its production.
As a result of this tweet, the price of Bitcoin fell sharply by about 15%, and in his response to a tweet from a user at the beginning of last week, (Elon Musk) agreed to the user’s suggestion that Tesla sell its Bitcoin assets, or it may have done so. Indeed, this tweet once again drove the price of Bitcoin to its lowest level since February.
– Elon Musk (@elonmusk) May 16, 2021
Then, on Monday of the same week, he tweeted that: Tesla had not sold Bitcoin in the recent period, which seemed to halt the decline slightly as bitcoin kept its prices at around $ 45,000.
To clarify speculation, Tesla has not sold any Bitcoin
– Elon Musk (@elonmusk) May 17, 2021
Second: How do the opinions of the famous entrepreneur affect the prices of other cryptocurrencies as well:
Elon Musk’s tweets were not only limited to Bitcoin, but other cryptocurrencies had a share of sudden price fluctuations after he tweeted from him, in the week before last the price of Dogecoin rose by 30% after his tweet in which he stated that he He works with the developers of this coin to improve its efficiency.
Working with Doge devs to improve system transaction efficiency. Potentially promising.
– Elon Musk (@elonmusk) May 13, 2021
All this means that Elon Musk’s tweets have become a great influence on the prices of cryptocurrencies, so is the famous entrepreneur actually engaging in trading indirectly on cryptocurrency exchanges, or is it just giving bold opinions as always?
(Galen Moore), Data Manager at CoinDesk A specialist in cryptocurrency news and analysis: “There are a few questions that have arisen after the price movement of Bitcoin during this month after (Elon Musk) tweets, and it also raises uncomfortable questions about price manipulation.”
Last February, Tesla bought 1.5 billion Bitcoin, which helped raise prices to their highest level at that time, and later sold about 10% of it to reach $ 101 million, according to the company’s earnings report for the first quarter of this year, and the company achieved record profits from this sale. In fact, according to a recent report, the company has It made a profit selling Bitcoin More than sold its electric cars in the whole of 2020.
Returning to the famous entrepreneur, besides his controversial tweets about cryptocurrencies, it is not known – until now – whether the person who is considered the second richest man in the world buys or sells bitcoin after his tweets, because of the cryptocurrencies, such as: currency Bitcoin is not subject to government financial institution laws, or stock market oversight comprehensively.
But what is certain is that the famous entrepreneur and billionaire has become almost in control of the prices of cryptocurrencies with his surprise tweets in support of one currency or warning about another currency, which affects the direction of investors and then the prices of these currencies, up and down.
Also, its huge influence on moving the price of cryptocurrencies is not expected to disappear soon, as cryptocurrencies are becoming more and more popular and many are seeing them as the way to get rich quickly, and the opinion of a person about them is considered an influential on the Internet, such as: (Elon Musk), even if with a tweet, it became effective Big on the price fluctuations of these cryptocurrencies, even if many deny this.