As Elon Musk tweets go, so goes the crypto market. The billionaire and Tesla CEO has been tweeting about crypto a lot, too, sending the price of bitco

When Elon Musk tweets, crypto prices move

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2021-06-04 17:30:06

As Elon Musk tweets go, so goes the crypto market. The billionaire and Tesla CEO has been tweeting about crypto a lot, too, sending the price of bitcoin — as well as dogecoin — up and down with fewer than 280 characters.

Musk’s tweets, while not necessarily posted for his own financial gain, can greatly affect investors in cryptocurrency. They also raise questions about the solidity of a market that can be so easily swayed, especially as retail investors increasingly flock to cryptocurrencies. The cryptocurrency exchange platform Coinbase in April became the first major cryptocurrency company to go public in the US, signifying the mainstreaming of blockchain-based currencies like bitcoin, ethereum, and dogecoin.

Musk’s cryptocurrency tweets in the past few weeks have been particularly impactful for bitcoin. In May, Musk tweeted that Tesla would no longer accept bitcoin as payment due to environmental concerns about its heavy energy use, a reversal of its acceptance of the marquee cryptocurrency just two months earlier. As a result, the price of bitcoin dropped around 15 percent.

In a response to a tweet from someone with the handle @CryptoWhale, Musk a few days later suggested that Tesla would sell its cryptocurrency holdings — or may have already done so. That tweet made the price of bitcoin drop to its lowest level since February.

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