Social media platforms have long been seen as a “signal” generator for traders and investors of the crypto space. Due to the relatively small size of Bitcoin ($BTC) and other coins (in terms of market cap, compared to many other stocks or commodities like gold), public opinion can quickly and significantly move crypto markets. But things are going way too far.
Imagine if a few decades ago, you would have told one of the richest people in the world they can control the price of an asset, and make it rise and fall drastically, by merely writing a few words. Their eyes would have flickered and small, green, dollar signs would have appeared in front of each pupil. Well guess what — that’s kind of what’s happening now.
Elon Musk, the billionaire behind Tesla and SpaceX, has the power. In the past few months, cryptocurrencies like Dogecoin and Bitcoin have fluctuated wildly based on Musk’s tweets. While the tweets may have not been posted for his own financial gain (and in truth, Musk doesn’t really need to tamper with the market, at a net worth of some $160 billion), they did send the crypto market on a wild rollercoaster.
Sometimes, the tweets were semi-relevant to the crypto market, like when Tesla stopped taking Bitcoin (after previously bragging that it does accept Bitcoin), or that time SpaceX launched a Dogecoin-funded satellite into…