- Bitcoins soared to an all-time high of $64,000 in April.
- Elon Musk’s tweet increased the currency tenfold.
Elon Musk showed no interest in Bitcoin for 11 years after it was launched in 2009. Then, in early February 2021, he stated that Tesla had acquired $1.5 billion in coins, which boosted the cryptocurrency to new highs. That phenomenon is now known as the ‘Elon Musk’ effect.
Elon Musk Effect
Elon Musk’s tweets have previously enraged crypto investors. Musk said in March 2021, ‘I am getting a Shiba Inu.” He tweeted he named Shiba Inu, Floki, on June 25. An image of his dog lying on the rug was shared on September 12. Floki Inu increased 1,000% by September 15 due to these tweets. So, in three days, Elon Musk’s tweet increased the currency tenfold.
When Musk stated Tesla acquired $1.5 billion worth of bitcoins in February, the cryptocurrency soared 20% in one day. On February 4, he said, ‘Dogecoin is the people’s crypto,’ prompting a 50% increase in one day. Overall, Dogecoin has risen 15,000% in a year due to Elon Musk’s backing through Twitter.
Bitcoins soared to an all-time high of $64,000 in April after Musk revealed Tesla would accept bitcoin payments. But shortly after he warmed up to bitcoins, he declared his newfound love for Floki.
Musk declared in May that Tesla would not take bitcoins due to environmental concerns. He is worried about the increased usage of fossil fuels for bitcoin mining and transactions, particularly coal, which generates the maximum pollution.
He said bitcoin was a good concept, but not at the expense of the environment. Bitcoin dropped 10% following the tweet.
At least 50% of my tweets were made on a porcelain throne
— Elon Musk (@elonmusk) November 22, 2021
Following the news, the number one cryptocurrency fell 27%. In the same month, Dogecoin fell by roughly 20%. Now, Elon Musk has posted a new tweet, “At least 50% of my tweets were made on a porcelain throne.” Leaving netizens wondering what’s coming up next.