The Musk Effect: A Catalyst for Market Ripples
In an unforeseen turn of events, Bitcoin experienced a rapid and significant downturn on Thursday evening, dropping by 9% to surpass the $26,000 mark. The digital currency’s most recent trading value was $26,593.68, marking a decline of over 8%, according to Coin Metrics data.
This sudden drop in Bitcoin’s value occurred several hours after a significant revelation by The Wall Street Journal. Elon Musk’s SpaceX had devalued its bitcoin holdings by a total of $373 million in 2022 and 2021. Moreover, the aerospace manufacturer and space transportation company had started selling its bitcoin holdings.
The Musk Effect on Altcoin
A recent study has revealed that Elon Musk’s mentions of specific altcoins on X (formerly known as Twitter) have the potential to increase the values of these cryptocurrencies. This investigation sheds light on the relationship between influential figures and the cryptocurrency market, highlighting their ability to influence digital asset valuations. Referring to his stance on the matter during “The B-Word” conference in 2021, Musk stated, “If the price of bitcoin goes down, I lose money. I might pump, but I don’t dump.” These comments emphasize his role as a supporter of the market while exercising caution regarding sudden price changes.