New research shows that Tesla and SpaceX CEO Elon Musk is having a significant impact on the price of cryptoassets.
According to a paper published on January 3 by Blockchain Research Lab, Elon Musk’s random musings on Bitcoin and Dogecoin (DOGE) have had profound effects on the market.
The paper, titled “How Elon Musk’s Twitter activity moves cryptocurrency markets”, evaluated six occasions in the past year during which Musk tweeted about cryptocurrency. The researchers examined the resulting impact on trading volume and spot price for the coins that were mentioned.
Four of the six tweets were related to Dogecoin, with the other two commenting on Bitcoin. All six tweets had a significant impact on the trading of both cryptoassets, with a substantial boost in trading volume noted in the aftermath:
“Across all events, we identify significant increases in trading volume that are attributable to the events.”
The researchers found Musk’s December 2020 tweet saying “One word: Doge” as the most impactful of the bunch, causing the trading volume to turn exponential.
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