Here’s how much Musk and Saylor’s tweets influenced crypto prices in Q2

by Gordon James

Tesla CEO Elon Musk and Tesla board member Robyn Denholm’s Twitter activity in the second quarter of 2018 was a significant factor in crypto prices. According to a new study by eToro’s Chief Investment Strategist Mati Greenspan, Tesla CEO Elon Musk and Tesla board member Robyn Denholm’s Twitter activity in the second quarter of 2018 was a significant factor in crypto prices. According to the study, 59% of the change in price for bitcoin between February and May was due to Musk’s tweets in Q2, while Denholm’s tweets accounted for 15% of crypto’s Q2 price movements. Greenspan, who discovered that Musk’s tweets caused a drop in ethereum

It’s no secret that Elon Musk is not a fan of cryptocurrencies. In September 2018, the Tesla and SpaceX CEO blasted cryptocurrencies on Twitter, saying that they are  a “freak speculative mania” and that the market is “nuts.”

Yes, Elon Musk is one of the most influential people in the world. He almost single-handedly brought Tesla to where it is today, and is now betting big on building a network of self-driving Tesla cars. But, what if he had been more moderate with his tweets? How would the crypto markets have reacted to the news? And, how would the markets have changed if Musk had taken a subtle approach to his tweets and kept them to a minimum?. Read more about cryptocurrency stock prices and let us know what you think.

 

During the second quarter, Elon Musk and Saylor, Michael had a key part in influencing crypto investor mood, highlighting how new digital asset investment is in comparison to other, more established sectors. 

The TIE and eToro USA conducted a sentiment-driven study to see how much Musk and Saylor influenced Bitcoin (BTC) prices in the second quarter. The findings were published in eToro USA’s quarterly report “The True Value of Influence.”

Elon Musk

According to the study, Musk’s Bitcoin tweets were followed by a 1.6 percent drop in BTC price during the next 24 hours on average. Musk’s Bitcoin-related tweets, on the other hand, had a favorable impact on investor mood and led to a 44.4 percent increase in BTC-related tweet traffic.

Musk’s Bitcoin-related tweets were linked to an even larger price decrease on three instances, according to the study. His post about the centralization of mining on May 16 was linked to a 7.6% drop in Bitcoin’s price during the following 24 hours.

Bitcoin is really quite centralized, with a small number of large mining (or hashing) firms controlling the vast bulk of the currency.

In Xinjiang, a single coal mine flooded, almost killing miners, and the Bitcoin hash rate fell by 35%. Do you think it’s “decentralized”? https://t.co/Oom8yzGRNQ

May 16, 2021 — Elon Musk (@elonmusk)

His tweet on May 12 on Bitcoin’s use of fossil fuels most certainly led to BTC’s 9.4% drop during the same time. Finally, Musk’s assertion that worldwide Bitcoin mining consumes more energy than certain medium-sized nations followed an 11.3 percent drop in the BTC price in less than 24 hours on May 20.

Energy consumption for bitcoin hashing (also known as mining) is beginning to surpass that of medium-sized nations. Small hashers would struggle to thrive without such enormous economies of scale.

May 20, 2021 — Elon Musk (@elonmusk)

When Musk announced that Tesla will no longer accept Bitcoin payments owing to environmental concerns, he drew the wrath of the Bitcoin community. Last week, the Tesla CEO seemed to backtrack on his remarks, claiming that Bitcoin miners may have already met his renewable energy standard.

Elon Musk and Nic Carter think Bitcoin is getting greener, and SpaceX owns it.

Michael Saylor

MicroStrategy CEO Michael Saylor’s comments also seem to have had an impact on Bitcoin’s price, although in the other way. As explained by The TIE and eToro USA:

“The bulk of his tweets were sent out when Bitcoin’s price rose from $11,000 to $60,000.” Most have a favorable tone, whether it’s announcing MicroStrategy’s recent Bitcoin acquisitions or just supporting the commodity in general.”

The price of Bitcoin rose by 4.4 percent on average in the 24 hours after Saylor’s Bitcoin-related tweets, while investor sentiment dropped by 0.8 percent and tweet volume increased by 4.1 percent.

The CEO of MicroStrategy believes Bitcoin represents humanity’s “apex” accomplishment, characterizing it as a “cure” for civilization-destroying inflation. Since mid-2020, entities under his direct control have accumulated more than 111,000 BTC.

#Inflation is a disease that has ravaged civilizations throughout history, and #Bitcoin is the antidote. https://t.co/nmj753S8fj

July 25, 2021 — Michael Saylor (@michael saylor)

Saylor asked his 1.3 million Twitter followers how long they believe Bitcoin would survive in a recent poll. Nearly 38 percent of the more than 105,000 individuals who took part in the survey think Bitcoin would survive 10,000 years.

#Bitcoin is here to stay.

July 23, 2021 — Michael Saylor (@michael saylor)

Michael Saylor believes Bitcoin will never be a currency in the United States.

Influencers on YouTube are on the rise.

The increasing influence of YouTubers on the bitcoin market was also noted in the study. “Just as influencers are widely recognized to drive participation in the consumer goods and fashion sectors,” the researchers said, “popular social media celebrities do the same with crypto assets and protocols for users, traders, and investors.” 

Bitboy Crypto, a channel with over 1.1 million followers, was singled out in the study as having one of the most engaged audiences in the business. Coin Bureau, Altcoin Daily, and Sheldon Evans were all mentioned as having seen significant growth during the bull market. 

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