‘Bitcoin’ hashtag on Twitter → 19% surge
Dogecoin is also 800% in one day due to the’Musk effect’
Musk’s’short selling hate’ highlights US ant vanguard
Chief Executive Officer Elon Musk, founder of Tesla, an American electric vehicle company. Photo = Reuters = Yonhap News
The representative virtual asset (cryptocurrency) bitcoin price soared nearly 19% on the 29th. Elon Musk Tesla Chief Executive Officer(CEO, photo)Immediately after adding the’bitcoin’ hashtag to their Twitter account profile, the industry is interpreting it as a’musk effect’.
According to the virtual asset exchange Binance, the bitcoin price, which remained at $32,000 at 5:50 pm on the same day, suddenly surged after CEO Musk added the bitcoin hashtag to his Twitter profile, 37990 in an hour. It soared to the dollar (about 4.43 million won).
In a word of Musk, Bitcoin 19%, Dogecoin 800%, Gamestop 60% surge
This is not the first time that the market price of a specific asset has soared in a word from CEO Musk.
After he tweeted the word “Gamestonk!!” on his Twitter on the 26th, the stock price of GameStop, a company listed on the New York Stock Exchange (NYSE), rose more than 60% in the after-hours market.
Stonk means “bane bombing,” and analysis has shown that Musk’s CEO empowered individual investors who were buying GameStop shares against the short-selling forces at the time.
Dog (DOGUE) photo posted on Twitter by Elon Musk during the surge in Dogecoin (Photo = Elon Musk’s Twitter screen capture)
On the 28th (local time), Meme·Dogecoin, well known as a popular culture on the Internet, has soared after Musk’s advocacy statement.
Wallstreetbets, a US investor community who was blamed for the skyrocketing gamestop stock price, started paying attention to Dogecoin on this day, and the market price rose. )’I posted a picture and lit it.
Since then, Dogecoin’s rise has grown even steeper, soaring by 800% for a day, hitting the 7th place in the global virtual asset market (about 10,3775 trillion won).
Bitcoin price graph that surged shortly after Elon Musk Tesla CEO (CEO) added’#BITCOIN’ to his Twitter profile (Photo = Binance Exchange screen captured)
As the prices of assets mentioned by Elon Musk surged one after another, the’ants’ (individual investors) who invested in them are enthusiastic, while the short selling forces are literally’nightmares’. This is because the short selling, which bet on the decline in the market price, inflicted huge losses to the forces one after another.
Melvin Capital, a renowned investment company that has been short selling Gamestop stocks, is reported to have lost trillions of losses due to the surge in GameStop stock prices. The exact amount of losses is not known, but Melvin Capital received a total of $2.75 billion (approximately 330 trillion won) in bailout assistance from Citadel and Point 72 for the loss.
On the 29th, shortly after CEO Musk added a bitcoin hashtag to his profile, a surge in market prices resulted in a forced liquidation of a bitcoin short (short selling) position worth 86.4 million dollars (approximately 95.6 billion won) on major bitcoin futures exchanges.
Tesla, which he is headed by, is also famous for causing huge losses to short-selling investors as stock prices continued to surge from last year. According to data released by US financial information analysis company S3 Partners, investors who sold Tesla short last year were estimated to have suffered a loss of $40.1 billion (about 44.600 billion won).
‘Short selling hate’ Elon Musk highlights US ant vanguard
On the 28th, CEO Musk wrote on Twitter, “You can’t sell a house or car you don’t own. But does it make sense to sell stock you don’t own?” As the stocks and virtual asset craze continued, the fight between the short selling force and the ant corps became a hot topic every day, which gave strength to the opinions of individual investors.
It is speculated that Musk’s CEO pointing to GameStop, Dogecoin, Bitcoin, etc., and causing the market price to surge was intentionally to “support fire” on the ant army. As Tesla had a long history of struggling with short-selling powers when it was struggling with management difficulties, it is an analysis that he asserts itself as a’spearhead’ of ants in order to sound the alarm at the short-selling powers in this situation.
Musk’s “short selling hate” is well known in the world. In 2018, CEO Musk announced plans to delist Tesla against short selling forces, inducing stock prices to rise, and was accused of stock price manipulation by the U.S. Securities and Exchange Commission (SEC), and was fined 20 million dollars (about 22.3 billion won). .
Reporter Kim San-ha, Hankyung.com
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