A single tweet from Musk used to make the value of Bitcoin rise or drop significantly in a matter of hours. As the market matures, personalities and influencers will have less power over the price of cryptocurrencies.
In the past, a single tweet from Elon Musk caused the price of Bitcoin (BTC) to climb by 20%. Meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) also benefited significantly from the comments from the businessman. However, personalities and influencers seem not to have any power over the market of those crypto assets.
Some disagree with the above statements, alleging that characters like Elon Musk and Michael Saylor are more active than ever. They also react to the opinions of those people, placing great importance on their posts on their social networks. However, the market yields other data, although the dynamics at the social level remain the same.
Musk Keeps His Bitcoin Holdings amid the Current World Situation
Elon Musk recently confessed that the growing inflation in the United States and the imminent international crisis led him to keep his cryptocurrency holdings. He recognized that Bitcoin serves as a store of value during unfavorable economic situations like the current one.
However, the Bitcoin price did not react significantly to the statements from Elon Musk. It continued moving sideways between USD 37,000 and USD 38,000, as it had been doing since Russia decided to invade Ukraine.
In early 2021, Musk changed his biography to the Bitcoin acronym, making the community crazy and boosting the price by 20% in just hours. Some bitcoiners saw the billionaire as a god, believing that he would elevate Bitcoin to the path of global adoption.
A few months later, Musk antagonized the community by arguing that Bitcoin mining harmed the environment. For that reason, Tesla stopped receiving the cryptocurrency as a payment method for its electric cars.
At that time, his devastating tweets caused the price of the pioneering cryptocurrency to drop from USD 60,000 to almost USD 40,000. That happened less than a year ago when the comments from Musk seemed to be more important than those from experienced cryptocurrency specialists.
How Musk Lost His Influence over Bitcoin
Now one single person does not have the power to make the Bitcoin price rise or drop by more than 20% in a single day. However, it is relevant to delve into the reasons for the decline in the influence of Musk and other personalities on cryptocurrencies.
The views of Musk are no longer new, and there are global economic factors with much greater weight in the financial market. Presidents, economists, firms like Visa, and ordinary people talk quite properly about Bitcoin. The comments from the billionaire have become irrelevant as he has accepted and rejected the crypto asset many times.
For that reason, when Musk talks about Bitcoin, very few people see his words as crucial milestones. Besides, the Dogecoin market, one of the most supported by the businessman, did not react to his positive comments. Investors are looking for information from sources other than Twitter before deciding where to put their money.
By Alexander Salazar
