When Musk tapped the keyboard eight times, Bitcoin jumped $6,000 Bitcoin Now

If you ask people who are the most attention-grabbing entrepreneurs on the planet right now, maybe Elon Musk won the most votes. Musk, the CEO of Tesla, the world’s largest electric vehicle company, is also a social media (SNS) star with over 47.6 million followers on Twitter.

His influence is not only confirmed by the number of followers. These days, whenever Musk, who seems to be stuck in cryptocurrency, throws a word to SNS about’Bitcoin’ or’Dojicoin’, the coin value fluctuates repeatedly. Foreign media ‘Musk Effect’Defined as As Tesla’s purchase of $1.5 billion (about 1.7 trillion won) worth of Bitcoin was revealed on the 8th, his tweets are getting more attention.

Forbes, an economic journal “Musk’s Twitter account is not a big influence, it drives the market.”And “Whether his tweets are joke or not, people hear it and act accordingly.”Said.

The Blockchain Research Lab at the University of Hamburg, Germany, recently published a report titled “How Elon Musk’s Twitter Activity Moves the Cryptocurrency Market?” Musk picked six cases of cryptocurrency-related stances on Twitter, and analyzed changes in price and volume over the previous 10 hours and the next 6 hours.

In conclusion, the report analyzed that there have been several instances where Musk’s tweets have increased the short-term volatility of the cryptocurrency market.

Bitcoin $6,000 in ‘8 Sans Self-Introduction’↑

On the 29th of last month, Musk changed his Twitter account to’#Bitcoin’. In English,’#bitcoin’. It was only eight letters. Within an hour thereafter, the price of Bitcoin jumped from $32,000 to $38,000. Short-term profit-taking sales poured down to $36,000, then rebounded and settled at $38,000. In one hour after Musk’s self-introduction change, bitcoin trading volume surged to quadruple levels and then fell to the previous level.

On the 28th of last month, Musk mentioned another cryptocurrency, Dogecoin, on Twitter. It is through the painting of Dog parodying the cover of the fashion magazine Vogue. The report pointed out that the ripple effect of this tweet was also considerable. After 4 hours of tweeting, the price of Dogecoin surged quadrupled and then fell in half, moving as if riding a roller coaster. The trading volume also rapidly declined after a short-term surge.

Even when Musk tweeted “One word: Doge” on December 20 last year and “Excuse me, I only sell Doge” on July 18 last year, the price of Dogecoin And trading volume surged momentarily.

However, not all of Musk’s tweets shook the cryptocurrency market. Musk left a tweet on December 20 last year, saying, “Bitcoin is my safe word.” Safe Word is known to mean a word that is used as a signal to “stop” when people with SM tastes enjoy sexual relations with each other and it is difficult to bear the pain. On this day, the bitcoin price fell 1.7%, and there was no change in trading volume.

“I should have bought it 8 years ago”… “I bought it for my son”…

Musk didn’t seem to have much interest in cryptocurrency just three years ago. He once said in 2018, “My friend gave me bitcoin before, but I don’t know where it is because I don’t manage it separately.” In the cryptocurrency mining process, it was pointed out that power wasted too much. However, in 2019, he said, “It can be a valuable tool”, saying, “The advantages of digital currency are visible and are quite interesting.” In an interview with the clubhouse earlier this month, he said, “I should have bought bitcoin 8 years ago,” and “I am a bitcoin supporter.” On Twitter, he wrote, “I bought Dogecoin for my little X (son).”

Musk’s case is an analysis that shows that social media activities of influential individuals, companies, and groups can affect the cryptocurrency market.

The essence of this report comes at the end. How will the last sentence left by Researcher Lenart Ant be taken to investors enjoying Musk’s tweeted bull market?

“If one tweet can make the bitcoin market cap jump $111 billion, it’s possible that that amount of market cap will fly to another tweet.”

Reporter Lim Hyun-woo [email protected]