Elon Musk’s influence on the cryptocurrency market in 2021

SpaceX & Tesla CEO Elon Musk has been a talking point between market traders and investors alike for his keen interest and participation in the cryptocurrency trade market. Of course, being the second richest man in the world also plays a major role in the influence he has on the trade prices of various cryptocurrencies. He holds a fair share of crypto assets and is an active trader and investor, promoting the use of cryptic values every chance he gets. 

Elon has over 55 million followers on Twitter, and every person even remotely in a position to know about the cryptocurrency trade has a good idea of Musk’s involvement and importance in trade practices. For a long time, the cryptocurrency market has been reputed as highly volatile and constantly changing, thanks to its 24X7 runtime. The major cryptocurrencies like Bitcoin, Ether, Litecoin, and others face major difficulties since the beginning of this year, and Elon’s take on the market is linked directly to market trends. 

Every time Musk has expressed his views on a particular cryptocurrency; the market has followed the approach instantly. The market analysts and the trading applications have stated that there is an instant surge in activities as soon as Elon’s new tweets or television appearances come to light. There have been several instances where the more Elon praises a particular cryptocurrency token, its prices skyrocket, and when he decides against a cryptocurrency, the trade market witness’s major losses. 

A few major companies investing in Bitcoin as a hedge to avoid inflation led to Tesla investing $1.5 billion worth of Bitcoins to support the new-age digital currency market. As, if the major investments weren’t enough to support the cryptocurrency, Tesla CEO also announced that they would accept bitcoin as a mode of payment for their cars, which led to a major hike in prices for the world’s largest cryptocurrency in terms of market capitalization. However, the rise in prices and market demands were short-lived as Elon later continued to put a halt on their decision to begin accepting Bitcoin as a means of trade for its cars stating major environmental impacts cryptocurrency mining is leading to, which led to the cryptocurrency fall to the lowest prices in two months. 

These situations depict Elon Musk’s power to influence the market with his social media tweets. He is questioning the environmental impacts of mining has led to a major downfall, close to 30% this year, even though the prices are almost 300% of what they used to be last year. This affected investor’s and trader’s outlook towards these tokens of digital currencies and therefore altering the sale and purchase of these cryptic values.