Elon Musk begins to lose power over the cryptocurrency community

Latest tweets of Elon Musk about Dogecoin (DOGE) and Bitcoin (BTC) had no effect on the market. Is this the end of the "Musk Effect"?

Latest tweets of Elon Musk about Dogecoin (DOGE) and Bitcoin (BTC) had no effect on the market. Is this the end of the “Musk Effect”?

“Elon Musk Effect”: Is it the end?

It appears that the “Elon Musk Effect” on the cryptocurrency market is fading.

In recent months, the CEO of Tesla and SpaceX was a major cause of Bitcoin volatility, when the billionaire claimed that Tesla would accept BTC as a form of payment (and later, when he turned back), and Dogecoin, when he celebrated the potential of the cryptocurrency meme.

However, Musk’s influence appears to be weakening in the second half of 2021.

On July 1, Musk published on his Tweet “Release the DOGE”, but the price of the currency rose little – much less than it would have months ago. In May, for example, the cryptocurrency meme appreciated by 20% after Musk questioned on his Twitter whether Tesla should accept DOGE as a form of payment. In addition, it is worth remembering that one of his companys already acept the criptocurrency, as SpaceX will acept Dogecoin to launch lunar mission in 2022.

The next day, the billionaire tweeted an image of Dogecoin. Again, without much effect on the price of the Token.

What do critics say?

Critics of Musk believe that cryptocurrency investors are no longer listening to him and that they have finally realized that “a man’s tweets shouldn’t be a decision factor in whether to buy or sell assets”.

Critics criticize Musk's influence on cryptocurrencies. Source: Business Insider.
Critics criticize Musk’s influence on cryptocurrencies. Source: Business Insider.

According to them, the billionaire would be manipulating the cryptocurrency market through his tweets. Furthermore, a single individual having so much power is potentially dangerous and can encourage investors to make decisions with little or no research.

Elon Musk and the criptocurrency market

The billionaire behind Tesla and SpaceX is known to have a strong influence – both offline and with their followers on social media. This influence would even be impacting the cryptocurrency market. This made his critics call him a “cryptocurrency manipulator” and creating a currency – STOPELON – to try, literally, to stop Musk’s influence.

Since Musk said on his Twitter that Tesla will no longer accept Bitcoin as a form of payment, the world’s most popular cryptocurrency has lost its value. The price of the digital asset didn’t get much reaction when the billionaire suggested a “promising” outcome of a discussion with miners to make BTC more sustainable, or when Musk imposed the conditions for Tesla to return to accepting bitcoins.

Bitcoin is currently trading at around $33,000, nearly 50% below its April peak. In the year, however, the price of the cryptocurrency accumulates gains of 15% in 2021.

BTC today's price. Source: CoinMarketCap.
BTC today’s price. Source: CoinMarketCap.

It is worth remembering that Elon Musk has already influenced the price of other cryptocurrencies, such as the STAR token, when tweeting about SpaceX facilities and SHIB, when the billionaire informed that he would be buying a Shiba Inu.

However, it appears that Musk’s influence is not having the expected impact. Will it be the end of an “era”?

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