The Elon Musk Effect

Elon Musk has been vocal about cryptocurrencies and especially dogecoin. With the launch of SHIBA and its inability to achieve traction at the start, it did, later on, make a splash when people like Elon Musk started to take curiosity.

Tech billionaire Elon Musk was a vocal supporter of Dogecoin and even named himself as the “Dogfather”, claiming to be the unofficial CEO of the coin. During the Saturday Night Live show, Musk hinted that he will point out Dogecoin everywhere and this fuelled a huge value rally which boosted the worth of SHIB as well. In 5 days, the value of SHIB surged over 2000%, and the coin’s value stop together with the market crash that happened when Musk announced his electric car company will not accept Bitcoin transactions anymore as a payment method. The coin then shifted around in the first week of October when he shared an image and title of his new Shiba Inu pet and the value of the coin overall increased over 27,000,000% from January to October.

During the first week of October, the Doge spinoff Floki Inu emerged and jumped 30% after a tweet from Elon Musk who got a dog named Floki, of the same Japanese dog breed. This was of course, not the first time that Musk’s tweet left the investors baffled. He tweeted that he will get a Shiba Inu that will be named Floki. And indeed he did, as he posted a picture of his dog sleeping ont e rug. As a result, Floki Rose by 1000%.

After he announced that Tesla will not accept Bitcoins because of environmental concerns, he said that he is concerned about the rapid increase of use of fossil fuels for BTC mining and transactions which has strong emissions that pollute the earth. He admitted that BTC was a good idea but can’t come at a great cost to the environment. After this announcement, BTC Dropped by 10% as well and saw a correction by 27% after the announcement. DOGE crashed by 20% the same month. Since crypto can be volatile, flip-flops and buying immensely can only add fuel to the fire. Short-term investors can ride the wave and get out of the market but if you want to stay in for the long run, it is not advisable to buy and sell impulsively.