Elon Musk loses power over crypto community after latest tweets fail to boost dogecoin or bitcoin

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Earn McNamee / Getty Images / Pavlo Gonchar / SOPA Images / LightRocket via Getty Images

The “Elon Musk Effect,” a phenomenon that rocked the crypto ecosystem this year, when every little tweet from the Tesla boss could make token prices soar or plunge, appears to be losing its luster.

The billionaire has been a key driver of bitcoin and dogecoin volatility after announcing Tesla’s $ 1.5 billion Bitcoin bet and praising the potential of the memes-inspired asset. More recently, its break with bitcoin has brought it back to values ​​not seen since the start of the year.

But as the second half of 2021 approaches, Musk’s influence doesn’t seem so relevant anymore.

Musk tweeted in favor of dogecoin on Thursday saying “Free the Doge!” alongside a meme inspired by the godfather portraying actor Marlon Brando. The coin’s price has increased slightly, but not as much as it would have been a few months ago. For example, dogecoin jumped 20% in May when it conducted a Twitter poll to ask if people wanted Tesla to accept the token as a form of payment.

Musk sent another tweet on Friday with an image of a man on his laptop, apparently laser-focused on dogecoin and the on-screen Polytopia game.

“It seems investors are no longer listening and are finally realizing that one-man tweets shouldn’t be the deciding factor in buying or selling their assets,” said Alexandra Clark, sales agent at GlobalBlock , a UK-based digital asset broker. Friday.

Several investors have crammed into dogecoin through the Robinhood trading app, which said on Thursday that the token meme represented 34% of its crypto revenue in the first quarter of this year. The company warned that its business could be affected if demand for the coin declines and is not replaced by interest in other cryptocurrencies.

On Friday, the price of dogecoin fell around 65% to around 24 cents from its peak of 68 cents in May.

Critics criticized Musk and his tweet storms for sending prices on a roller coaster and allegedly manipulating the market. With millions of cryptocurrency investments now, it is potentially dangerous for an individual to have so much power in their hands, as it could encourage investors to make decisions based on minimal, if any, research.

Since Musk’s break with bitcoin, the world’s most popular cryptocurrency has been going through some lull. He didn’t react much when the billionaire suggested a “promising” outcome of a discussion among bitcoin miners to make the asset more environmentally friendly, or when he said Tesla would start accepting it again. as payment when miners prove they are using 50% clean energy.

Bitcoin was last trading around $ 33,000 on Friday, down nearly 50% from its April peak. It’s still up around 15% so far this year.

It becomes difficult for investors to invest and balance the skills to be quick to adopt to beat the crypto market amidst a flow of information coming from a single influential voice. But it seems likely that the crypto community has grown tired of Musk’s tweets, possibly causing their influence to fade as another passing fad.

Read more: Investment chiefs at $ 1.2 trillion fund manager Nuveen set out ‘best ideas’ on how investors should build their portfolios in 5 major asset classes to be successful in H2 2021

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