Altcoins, Bitcoin, Cryptocurrency, Don't Miss, Economy, Hot News, News & Updates

Why Do Elon Musk’s Tweets affect BTC price?

What does Elon Musk contribute to the entertainment sector amidst building spaceships, hyperloop systems, and running an electric car business? Many in the crypto world will say, ‘pump and dump’ or just ‘fooling around’ with crypto coins and their price actions. For instance, the recent price rise in the last few months. It seems like Elon Musk’s tweets affect the crypto industry.

Each tweet of Elon Musk, who has more than 55 million followers on Twitter, affects the crypto market remarkably. As far as the main principle of the ecosystem goes, Decentralization goes against the basic principle of a decentralized industry.

For example, put into consideration the BTC’s price activities before and after Musk’s participation. Approximately 40% correction ever since its current all-time high. On the opposite side, DOGE has been affected as well, but mostly in a positive way.

The CIO of quant investment firm Cambrian Asset Management, is the newest crypto enthusiast to acknowledge Elon Musk’s tweets factor with crypto markets. He stated:

“Often the news itself, like Elon’s tweet, would have a different consequence in a different situation, you can light a match in the middle of my driveway… you can take that match and drop it on the floor in an open space. The monstrous difference in the consequences. Still the same match.”

Elon Musk’s tweets Factor

elon musk's tweets

He stated that it was not Elon Musk’s tweets that mattered, but the environment itself.

He then acknowledged the issue of lack of institutional spot buying and Leverage building in the organization. It triggered the bearish indicators. He continued:

“The flattening out of the marginal difference between spot buyers and spot sellers had become a lot more even-handed. Not like there was a huge accumulation of demand of spot that’s rising etc etc”

With regard to the drop that Bitcoin experienced, he stated:

“Any move down created a cascading of selling pressure. At the time, there was not that much leverage, there was building institutional spot volume.”

📣 Cryptonetwork.News is now on Telegram. Click here to join our channel and stay updated with the latest Cryptocurrency, Blockchain, and Cryptomining headlines

Leave a Comment

Leave a Reply