Tesla and SpaceX CEO Elon Musk is known to rile up the cryptocurrency market with his tweets either causing a steep plunge in the prices or sending them soaring “to the moon”.
Throughout the year 2021, the Neuralink and The Boring Company founder who is a space visionary used the microblogging site to share his opinions about Bitcoin, and Shiba Inu meme-inspired token Dogecoin with his more than 67 million followers.
He declared one time Tesla’s purchase of $1.5 billion in BTC and later said that his car company was selling a portion of the BTC holdings that fluctuated the market by a whopping 19.5%, $38,850 to $46,400, in just 24 hours.
Bitcoin dropped as much as 15 per cent in Asian trading as prices dipped by about 5% to $51,847 but Tesla’s shares were poised for gains after falling 4.4%.
Musk’s influence on the DOGE and Floki cryptocurrency prices is not unknown.
The longtime DOGE fan Musk also backed billionaire entrepreneur Mark Cuban’s claim that dogecoin is the strongest cryptocurrency as a medium of exchange and the meme-inspired token that was created as a joke spiked in its prices.
Musk made a string of endorsements for DOGE in 2021, the most impactful being when he simply changed his bio on Twitter as ‘#bitcoin’ and the cryptocurrency jumped as much as 20% adding $5,000 in the space of an hour to trade at $37,299 in one of the instant jumps.
It could recover only slightly, but a 5% dip below its current price pushed the token value to a further low in June until the 49-year-old Tesla CEO’s “Musk Effect” occurred.
Just recently, the price of FLOKI, a cryptocurrency named after Musk’s dog, skyrocketed after the SpaceX boss tweeted a photo of Shiba Inu hound in a Christmas dress.