Tesla CEO Elon Musk and MicroStrategy CEO Michael Saylor played an important role in shaping the mood of the cryptocurrency market in the second quarter of 2021. Very often, their Twitter posts provided a starting point for the ups and downs in the price of Bitcoin. Which in turn affected the rest of the coins. Analysts at The TIE and the American branch of the eToro trading platform decided to determine how influential the publications of these two billionaires have become.
The tweets of Elon Musk and Michael Saylor provoked volatility in the market, comparable to the values of 2017. This is the conclusion reached by the eToro service in collaboration with the information provider The TIE.
Analysts found that every time Musk posted a tweet about Bitcoin, the price of the cryptocurrency fell by an average of 1.6% over the next 24 hours. In the case of Sailor, the price of bitcoin grew by an average of 4.4%. The most influential was Musk’s tweet about excessive energy consumption due to Bitcoin mining. Then the price of the cryptocurrency fell by 11.3%.
However, Musk’s tweets themselves had a positive effect on investor sentiment. And contributed to a 44.4 percent rise in the total number of tweets about the main digital asset.
Accordingly, the researchers identified the key tweets, assessed the extent of their impact on the market, and then calculated the average.
Note that now Elon Musk preliminarily refers to Bitcoin fans. At The B Word conference, he noted an improvement in the cleanliness of the mining of the first cryptocurrency. And also called himself a fan of decentralized finance.
At the same time, the total effect of volatility from May to June of this year turned out to be similar to the crypto winter 2017, the researchers note.
The crypto market is still immature cause it still responds to Musk’s tweets
“Extreme shifts have proven that sentiment is an indicator of price movement. They also demonstrate why investors should take into account the daily changes in sentiment over time when making investment decisions”, said the experts.
Moreover, analysts have come to the conclusion; that if Bitcoin consolidates below the $ 30,000 level, the cryptocurrency market will face another version of the crypto winter.
Bitcoin’s reaction to tweets is hardly a good sign. For example, as the head of Fundstrat Advisors Tom Lee said earlier, the reaction of Bitcoin to the messages of the head of Tesla speaks of the immaturity of the cryptocurrency market.
However, it’s worth noting that it’s not just Bitcoin that responds to Musk’s tweets. Earlier, the SHIB coin jumped in price by 25%. It happened after Musk wrote that he decided to give the name “Floki” to his dog of the Shiba Inu breed.
It is important to note that tweets from one person – albeit one so famous – don’t move courses by themselves. Because they are influenced by many factors. However, they are able to influence the mood of investors. Who, in turn, begin to conduct transactions and influence asset prices. This means that the publications of Musk and other celebrities can really be considered a launching pad for changes in the cryptocurrency niche.