Elon Musk’s Influence on the Crypto Market: From Dogecoin to Bitcoin

Elon Musk has become a much-discussed name in the crypto world in recent years. Who says crypto, says Elon Musk. The successful entrepreneur is one of the richest in the world and a genius when it comes to innovation. Opinions are divided within the crypto community about the tech billionaire, but no one can ignore the fact that he has the sole influence within the sector.

Musk and Dogecoin: eternal love

Musk made his first step within the crypto community in April 2019 on Twitter stating that dogecoin (DOGE) might be his favorite cryptocurrency. Musk has now become a huge fan of the popular meme coin, which he regularly expresses in his tweets. With his almost 134 million Twitter followers, he manages to influence DOGE’s course every time.

Dogecoin was originally launched as a joke in 2013 by software engineers Billy Markus and Jackson Palmer. Musk has long been known as a fan of memes, so in that regard, the love story between Musk and the largest meme coin by market capitalization is not entirely unexpected. During the previous bull market, dogecoin had even temporarily become the third largest crypto by market capitalization, behind the big boys bitcoin (BTC) and ethereum (ETH).

Especially during the previous bull run, the DOGE price often reacted strongly as a result of Musk’s, usually vague, tweets. Dogecoin turned out to be one of the success stories of the past bull run, partly thanks to the controversial entrepreneur.

Even in last year’s bear market, the share price rose very fast after Musk acquired the social media platform Twitter. At the end of October, dogecoin rose by no less than 170% as investors became hopeful about a possible integration of the meme-coin on the platform.

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In June 2022, a lawsuit was even filed against Musk, because he would have deliberately increased the price of DOGE by 36 thousand percent and then crashed it. However, Musk’s lawyers now want the case dismissed, saying the tweets are “innocuous and bland” and too vague to be classified as fraudulent.

The somewhat strange relationship between Musk and Bitcoin

Since 2021, Musk has also spoken a bit more about Bitcoin. It all started in February 2021 when Tesla announced that it had invested $1.5 billion in bitcoin. A month and a half later, the major electric car maker even started accepting bitcoin as payments for their cars in the United States. However, when Musk announced in April that it would stop BTC payments due to the emissions from the Bitcoin network, the BTC price dropped enormously.

Musk also admitted in 2021 that he owns bitcoin, ethereum and dogecoin. Also, BTC would be the bulk of crypto holdings represent. However, Musk still shows that he believes that Dogecoin works better than Bitcoin.

Influencing the price of bitcoin is of course a lot more difficult than with dogecoin, due to the difference in market capitalization. In addition, Musk speaks much less often about BTC, in contrast to his beloved meme coin.

Musk’s influence on the BTC price therefore often comes from his companies. Musk has said that Tesla will accept BTC as a form of payment again if 50% of BTC miners’ energy consumption comes from renewable sources. Should Tesla (again) accept bitcoin, this would most likely generate a positive impulse for the price.

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