• Contact Us
  • About Us
  • Privacy Policy
  • Login
Upgrade
Daily Investment
ADVERTISEMENT
  • Daily Investment
  • Investment
  • Entrepreneur
  • Wealth
  • Subscribe
  • Courses
No Result
View All Result
  • Daily Investment
  • Investment
  • Entrepreneur
  • Wealth
  • Subscribe
  • Courses
No Result
View All Result
Daily Investment
No Result
View All Result
ADVERTISEMENT
Home Entrepreneur

This Is How Elon Musk Used Twitter To Create The Bitcoin Effect

Billionaire Elon Musk owns a ten-of-million-follower Twitter, therefore, his tweets get a decent amount of coverage from fans and media also.

February 26, 2021
in Entrepreneur, Investment, Wealth
0 0
0
This Is How Elon Musk Used Twitter To Create The Bitcoin Effect
0
SHARES
37
VIEWS
Share on FacebookShare on Twitter

Thus, there is no reason to be able to deny his big influence. His tweets are making stocks roll. As he updated his Twitter bio to #bitcoin in late January, just after a short period of time, the Bitcoin’s price popped almost 20 percent.

Musk has even posted about Dogecoin on his tweet but just said in a Clubhouse conversation that his cryptocurrency-related tweets are nothing serious but “jokes”. No matter what those tweets mean, people feel something and behave whenever Musk tweets.

You might also like

7 Basic Questions To Help Shape Your Career Priorities For 2021

7 Basic Questions To Help Shape Your Career Priorities For 2021

February 27, 2021
6
How To Begin Investing in Stocks Without Experience?

How To Begin Investing in Stocks Without Experience?

February 25, 2021
117

What is Musk ‘s influence on Bitcoin and Dogecoin prices?

Quantifying the Musk Cryptocurrency Impact

To test the Musk influence, Lennart Ante of the Blockchain Research Lab in Germany started out his study. He listed six latest Musk tweets that related to cryptocurrencies, two referencing Bitcoin and four discussing Dogecoin, or “events” such as updating Twitter profile.

Within before and after any tweet (or event) Musk posted relating to Bitcoin or Dogecoin, Ante then plotted the associated minute-by-minute close values, trading rate, and the number of trades from the cryptocurrency exchange Binance.

Event #1: Update of Twitter Bio to #bitcoin

There is a shift of Bitcoin’s price from about $32,000 to almost $38,000 within nearly one hour when Elon Musk changed his Twitter bio to #bitcoin on January 29, 2021. Over the next period, it fell to around $36,000, presumably due to certain profit-taking, and again rose up to $38,000 within next hours.

Bitcoin trading was under the number of 5,000 trades per hour on average in the hours leading up to Musk’s bio move. Trading soared to more than 20,000 trades in the 60 minutes after the bio update until dropping back down closer to its usual trading volume.

Event #2: A photo of Dogecoin posted

In comparison, it could be said that the Dogecoin photo in Musk’s posting on January 28 had a less immediate effect on that cryptocurrency than his Twitter bio altered, yet this impact was still important.

Approximately four hours after the tweet, Dogecoin’s price had increased four-times until dropping damn near 50% of the new high in the two hours that followed. Musk’s Dogecoin tweet enabled create a short-term surge of trade around five hours following the tweet, close to the prior day’s Twitter activity.

Event #4: A single word: Dogecoin

One of the important influences of his Twitter behavior was Musk’s December 20, 2020 tweet and the update of his Twitter bio. Ante said that the average DOGE/USDT trading rate was around $1,942 per minute within that 30 minutes before the event, with an average of 9 trades per minute. The average trading volume per minute was around $299,330 for the 30 minutes following the post, with 775 trades per minute.

Event #5: Musk tweeted “Bitcoin is my safe word”

Not all the Bitcoin and crypto tweets from Musk have a good effect on rate increases. In another post saying “Bitcoin is my safe word” on December 20, 2020 and the value of Bitcoin is just as bs as fiat money, which was accompanied by an approximately 1.7 percent decrease in Bitcoin price, with little observable shift in trading volume.

What Should Investors Do with their Bitcoin on Musk’s Tweets?

Four of the Twitter behaviors are presumably just correlations to prior market developments and contribute to few or no significant price responses in his report, Ante concluded. Nevertheless, the other ones seem not to be responses but separate actions that lead to enormous changes in trade rates and substantial and important irregular positive returns.

For investors who want to learn from Musk’s messages on Twitter, they should analyze before starting a business.

  • Pre-tweet trading practice. In the hours of the Musk tweet or case, was there uncertainty in trading? So then, Ante’s study indicates that if the market activity was less erratic, the effect of a Musk tweet would not be as high as it would be.
  • Time matter. The study of Ante indicates that to actually show the influence of a tweet from Musk requires a matter of time. There is a possibility for people to get involved in the trading turmoil of just an Elon Musk tweet.

After all, it could be concluded that the situation is two-direction interaction. Particularly, if a single tweet could theoretically contribute to a rise of $111 billion in the market capitalization of Bitcoin, as Ante describes, some separate tweet totally enables to wash out such similar proportion. If you are starting a business, you have to find a financial investment advisor, so that you can make a good decision base on your personal finance.

elon musk da khien gia bitcoin tang chong mat

Some speculators are anxious because of the move of Elon Musk’s tweets

The adjustment of the richest man in the world in his Twitter bio into #bitcoin is the reason for a 20% increase in value to $38,566 of Bitcoin on Friday. This move led many people to speculate that he spent more money on Bitcoin. At this time, Elon Musk appeared to prompt shares in CD Projekt less than a day ago. His tweet is about the intention to launch a new Tesla’s Model S Plaid car allowing passengers to entertain themselves by playing a game. Consequently, the shares of the Cyberpunk 2077 computer game increase more than 12%.

After that, Musk shared that we would have a relaxed game with Cyberpunk even with hotfixes.

Moreover, with the tweets “Gamestonk!!” (shares of Gamestop) and a link to WallStreetBets Reddit, Elon Musk made the stock of GameStop spike on Tuesday.

In the interview with CNBC, Dan Lane, an investigator of Freetrade said that the ability to manipulate the stock market of Musk was going against his thought of short selling. The analyst also expressed his thirst for analyzing the legality of this issue for the last time.

With a single Elon Musk’s tweet, GameStop’s stock value spiked over $ 10 billion after trading hours. However, many people are facing the potential of losing money in case of dropping in the value of GameStop’s stock.

Rich Pleeth, who used to work for Google and is now an investor in London, said to CNBC that the CEO of SpaceX could “enrich himself with one tweet.” He also expressed that no matter how innovative he was, Musk still had to obey the law.

In contrast, Max Levy of Nutmeg said this problem occurs a lot in the capital markets. Warren Buffett and Ray Dalio are considered to be the major influencers on property prices.

Following “Gamestonk!!”, just a few hours later, Musk tweeted “I kinda love Etsy” making shares of the online craft marketplace up 9%.

With this issue, some of the offices rejected to comment on Musk’s ability to manipulating the stock market by Twitter, including the Securities and Exchange Commission, the New York Stock Exchange. Besides, Nasdaq, a tech-focused stock exchange, and Musk’s representatives did not immediately respond to CNBC’s comment on the matter.

In August 2018, Musk had trouble with the SEC about his tweets about Tesla shares. He said that he wanted to buy Tesla back for $ 420 a share and that he had enough ability to do so. With this incident, Musk and Tesla each have to pay $ 20,000 in fines and Musk must disclose the financial situation of Tesla. Last year, Musk tweeted that the price of Tesla’s stock was “too high”, which led to a decreasing of more than 10% right then. It was the most notorious tweet of Musk even though Tesla’s stock had regained within a week.

Despite the huge impacts of Musk’s tweets this week, at this time, stocks and bitcoin have been shifted for a while. In recent times, Signal has been the app that Musk recommended for his followers. This is an app of a nonprofit promoting the user to utilize encrypted messaging.

With his status, many investors bought a lot of Signal’s shares. However, there were a few investors who mistakenly bought shares in Signal Advance, a small component maker. This caused stocks of Signal Advance to increase by 1,100%.

About new regulation, Dan Lane argued it needed to be updated, be highly applicable, and be clear. It also needed to be brief. He also talked about the difficult situation for the regulators. The SEC could update the new rules in case of the araising of public platforms belonging to the new brands. The challenge of the regulators is the public platforms of these managers which are not limited by the meeting room.

In the sharing with CNBC, Hussein Kanji, a venture capital investor in London expressed his confidence in the SEC’s ability to solve the problems that raising, and to keep the market fair and stable.

Kanji said that it was odd when Elon Musk had huge impacts on the market. He added that he wouldn’t be surprised when Elon Musk started to invest in the consumer product.

In the talk with CNBC, Steven Bartlett, playing the role of the founder of social media agency The Social Chain and a tech investor, shared his opinions about the appearance of influencers in the public market that was similar to fitness and beauty aspects. Additionally, he claimed that Musk was that influencer of the market, and the SEC can’t change that fact.

 

 

Tags: bitcoinElon Musk

Related Posts

7 Basic Questions To Help Shape Your Career Priorities For 2021
News

7 Basic Questions To Help Shape Your Career Priorities For 2021

February 27, 2021
6
How To Begin Investing in Stocks Without Experience?
News

How To Begin Investing in Stocks Without Experience?

February 25, 2021
117
The Elon Musk Effect On Crypto: Be Careful If You Are Not Rich
Entrepreneur

The Elon Musk Effect On Crypto: Be Careful If You Are Not Rich

February 26, 2021
243
Favorite Business Book with Real-time Lessons for Today from Bill Gates and Warren Buffett
Entrepreneur

Favorite Business Book with Real-time Lessons for Today from Bill Gates and Warren Buffett

February 24, 2021
52
Billionaire Battle: Ambani’s $3.4 Billion Retail Deal Stalled by Indian Court
Entrepreneur

Billionaire Battle: Ambani’s $3.4 Billion Retail Deal Stalled by Indian Court

February 22, 2021
11
CEOs of Robinhood, Citadel, and Reddit Faced a GameStop hearing on Thursday. What happened?
Wealth

CEOs of Robinhood, Citadel, and Reddit Faced a GameStop hearing on Thursday. What happened?

February 26, 2021
48
ADVERTISEMENT

Popular Post

  • Great Businesses Ideas You Can Start for Less Than $100

    Great Businesses Ideas You Can Start for Less Than $100

    0 shares
    Share 0 Tweet 0
  • Top 10 Most Common Financial Mistakes That Keep You Poor Forever

    0 shares
    Share 0 Tweet 0
  • Fiery Red Stocks, Goldman Sachs And JPMorgan Urged Investors To Catch The Bottom

    0 shares
    Share 0 Tweet 0
  • 10 Signals That You Really Should Be An Entrepreneur!

    0 shares
    Share 0 Tweet 0
  • What Is The Real Meaning Behind Reddit’s GameStop Stock Battle?

    0 shares
    Share 0 Tweet 0

Categories

Daily Investment

We bring you the best Premium Articles that perfect for entrepreneurs, investors, finance students, etc. Check our page for details.

Learn more

Categories

February 2021
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
« Jan    

Recent Posts

  • 7 Basic Questions To Help Shape Your Career Priorities For 2021
  • How To Begin Investing in Stocks Without Experience?
  • The Elon Musk Effect On Crypto: Be Careful If You Are Not Rich

© 2020 Investment.Ceo - Investment Blog by Daily Investment.

No Result
View All Result
  • Daily Investment
  • Landing Page
  • Buy JNews
  • Support Forum
  • Contact Us

© 2020 Investment.Ceo - Investment Blog by Daily Investment.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.