TL;DR Breakdown
- Musk’s influence on crypto prices
- When Musk started tweeting crypto
- Positives, negatives of Musk crypto tweet
The influence of the second world richest man, Elon Musk in the crypto space can no longer be underplayed especially as his crypto tweet goes a long way in determining the prices of these digital assets from time to time.
CoinSwap founder Erik Nurm, who spoke on the topic shed insights into why the billionaire’s influence could be a plus and a loss for the crypto space and other issues around Elon Musk crypto tweets.
Erik Numero notes that the billionaire’s ability to move cryptocurrency markets with his tweets represents a danger to the average investor.
Behind Elon Musk’s journey into crypto space
Nurm pointed out that Elon Musk’s tendency to tweet about Bitcoin (BTC), Dogecoin (DOGE) and other cryptocurrencies began shortly after the Tesla chief was banned from tweeting about his own company by the Securities and Exchange Commission.
“Elon has been manipulating the market by creating FUD around Bitcoin. He is playing the same game he did with the stock market,” said Nurm.
“After he was banned by the SEC from tweeting about Tesla, he has shifted focus to the crypto market, where he can run free on social media for now,” he added.
He notes that the power Musk possesses with his crypto tweet poses danger especially with Musk changing temper which he describes as running hot and cold.
This is as the billionaire announced earlier in the year that his firm Tesla would begin accepting crypto payment. A notice that led to a sharp surge in the price of Bitcoin but the billionaire reversed his decision weeks after which led to a decline in price of Bitcoin also.
More recently, Musk reversed his decision once again, announcing that Tesla would accept Bitcoin as a payment option once 50 percent of its mining was carried out with clean energy usage.
Positives of Musk crypto tweets
Burn states that the billionaire’s erratic nature when interacting with the crypto world could ultimately attract more people to it in the long run, even if for the wrong reasons, says Nurm.
“Even though Musk is temporarily causing turmoil in the market, his involvement could be beneficial for crypto in the long-term as he is attracting new people to crypto, albeit for sometimes the wrong reasons,” he said.
