Here’s how Musk and Saylors’ tweets influenced second quarter crypto prices

[ad_1]

Elon Musk and Michael Saylor were instrumental in shaping crypto investor sentiment during the second quarter, highlighting how nascent digital asset investment remains relative to other more established markets.

Sentiment-based analysis from The TIE and eToro USA reveals to what extent Musk and Saylor impacted Bitcoin (BTC) stocks in the second quarter. The results were presented in eToro USA’s quarterly report, The True Value of Influence.

Elon musk

On average, Musks Bitcoin’s tweets were followed by a 1.6% drop in the price of BTC over the next 24 hours, according to the report. However, Musks Bitcoin’s tweets had a positive impact on investor sentiment and contributed to a 44.4% increase in the volume of BTC-related tweets.

Researchers identified three occasions where Musks Bitcoin-related tweets were associated with an even larger price drop. On May 16, his tweet about centralizing mining was associated with a 7.6% drop in the price of Bitcoin over the next 24 hours.

Bitcoin is actually very centralized, with a qualified majority controlled by a handful of large mining companies (aka hash).

A single coal mine in Xinjiang was flooded, nearly killing miners, and the Bitcoin hash rate fell 35%. Seems decentralized to you? Https: //t.co/Oom8yzGRNQ

Elon Musk (@elonmusk) May 16, 2021

His May 12 tweet regarding Bitcoin fossil fuel use likely contributed to BTC’s 9.4% drop during the same period. Finally, on May 20, Musks claims that global Bitcoin mining exceeds the power consumption of some mid-sized countries before the BTC price drops 11.3% over 24 hours.

Bitcoin (aka mining) hash energy consumption is starting to exceed that of mid-sized countries. Almost impossible for small choppers to succeed without these huge economies of scale.

Elon Musk (@elonmusk) May 20, 2021

Musk won the contempt of the Bitcoin community when he said Tesla would no longer accept BTC payments due to environmental concerns. Tesla’s CEO appeared to revisit those comments last week when he said Bitcoin miners may have already reached its benchmark for renewable energy.

Related: SpaceX Owns Bitcoin, Elon Musk & Nic Carter Think BTC Is Getting Greener

Michael saylor

Tweets from MicroStrategy CEO Michael Saylor also appear to have influenced the price of Bitcoin, but in the opposite direction. As The TIE and eToro USA explain:

[T]The majority of his tweets came as the price of Bitcoin rose from $ 11,000 to $ 60,000. Most present a positive outlook, ranging from announcements of recent Bitcoin purchases by MicroStrategys to the overall promotion of the asset as a whole.

On average, within 24 hours of Saylors Bitcoin’s tweets, the price rose 4.4%, investment sentiment fell 0.8%, and the volume of tweets jumped 4.1%.

The CEO of MicroStrategy is convinced that Bitcoin is the supreme achievement of humanity, describing it as a cure for civilization-destroying inflation. Entities under his direct control have amassed over 111,000 BTC since mid-2020.

#Inflation is a cancer that has killed civilizations throughout history. #Bitcoin is the cure. https://t.co/nmj753S8fj

Michael Saylor (@michael_saylor) July 25, 2021

In a recent poll, Saylor asked his 1.3 million Twitter followers how long they thought Bitcoin would last. Of the more than 105,000 people who took the poll, almost 38% said they believed Bitcoin would last 10,000 years.

#Bitcoin will last

Michael Saylor (@michael_saylor) July 23, 2021

Related: Michael Saylor Doesn’t Think Bitcoin Will Ever Become a Currency in the US

The rise of YouTube influencers

The report also highlighted the growing impact of YouTubers in the cryptocurrency market. “Just as influencers are well known for driving engagement in the consumer product and fashion industries, popular social media personalities are doing the same with crypto assets and protocols for users, traders and investors. “the researchers said.

In particular, the report singled out Bitboy Crypto, a channel with over 1.1 million subscribers, as having one of the most engaged audiences in the industry. Chains like Coin Bureau, Altcoin Daily and Sheldon Evans were also cited for their substantial growth during the bull market.

[ad_2]