‘Elon Musk Effect’ influences crypto, but for how long?

Elon Musk

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TL;DR Breakdown

  • Following Elon Musk’s tweet, SHIB/USDT pair rose by 300% in the first week of October.
  • Under the leadership of Elon Musk, Tesla reported 73% increase in sale for Q3 2021.
  • Inner locus of mind affects Tesla CEO’s decisions, how about crypto events?

Elon Musk, the man behind multi-billion-dollar firms and the “Dogefather,” has continually influenced the crypto world with his tweets. His influence is definitely not limited to the crypto world as the Dogefather’s company, Tesla, reported record sales for Q3 2021 while competitors suffered. 

It was seen in April and May that as soon as Elon Musk tweeted about Dogecoin, the currency’s growth knew no bounds. The token creators were also amazed at the dramatic expansion as it rose by 692.14% in January and 527.6% in April. The enigmatic businessman has also been proven to have the same effect on Bitcoin, causing it to surge or slump depending on his tweets.

Musk is definitely too influential on Bitcoin prices.

Kevin Kang, co-founder and principal at BKCoin Capital

Shiba Inu and Dogecoin surged in prices following a similar trend as Elon Musk tweeted about these coins. Many envied this God-like power that Elon holds, who claim that Elon’s influence will soon die down. 

The Elon Musk Effect

Elon Musk has been causing price surges for Dogecoin and Shiba Inu for a long time now. In a recent Tweet, Elon Musk shared a Shiba Inu’s picture with a caption, Floki Frunkpuppy. This Tweet on 4th October caused a 57.85% surge in the price of Shiba Inu, followed by 28.49% on the very next day.  

On 6th, the price of SHIB token rose by more than 60%, as Dogecoin rose by 8.84% on 4th and 4.23% on 5th October, respectively.

Similar effects had been observed back in July when the entire market crashed as 200 billion USD got wiped off. 

The above Tweet, in which Tesla CEO claimed that “Dogecoin is money,” caused a momentary price surge for the DOGE/USD pair. The trading volumes surged as DOGE enthusiasts rushed in to make money.

Will the Elon Musk Effect die down?

Elon Musk has such a massive following on social media and helped with the success of Tesla as the competitors faded. For the third quarter of 2021, the company announced that manufacturing would be affected because of a global shortage of computer chips due to pandemic shutdowns and financial instability. 

While the sales for General Motors for the third quarter of 2020 were down by 33% and Ford’s by 27%, Tesla’s sales went up by 73% compared to the same period last year. This was the result of decisions and efforts taken by Elon Musk and his team. 

While the entire automobile industry waited for the rejuvenation of these computers chips, Elon Musk’s team decided to use alternatives. In a statement, Musk explained how Tesla battled the situation despite unfavorable circumstances.

“We were able to substitute alternative chips. And then write the firmware in a matter of weeks. It’s not just a matter of swapping out a chip. You also have to rewrite the software. It was an incredibly intense effort of finding new chips, writing new firmware, integrating with the vehicle, and testing in order to maintain production.”

Elon Musk

Elon Musk’s success and influence are unmatched and undeniable because of these factors. Elon’s common term for this psychology during unfavorable times is called “inner locus of mind.” 

Having mastered his art, it seems that the Elon Musk Effect will continue to grow stronger with time. His success with SpaceX and Tesla proves that his following is justified as he continues to rewire history. Whether he has that much influence on certain cryptocurrencies’ surging — or slump — remains to be seen. Or is it because he can see events before they happen?

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Anisha Pandey

A professional content creator, Anisha has ghostwritten ebooks on blockchain technology and cryptocurrencies. Consistently sharpening her writing skills, she believes in achieving results by working diligently and smartly.

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