How does X (Twitter) impact Bitcoin price? We dive into the science behind the link between Twitter activity and crypto market movements to uncover the facts.
Cryptocurrencies can quickly change in price, a characteristic that has both attracted and deterred investors over the years. Twitter and other social media play a significant role in shaping what people think about cryptocurrencies and influencing crypto market trends. Often, tweets from influential figures—industry leaders, tech visionaries, or financial moguls—hold the potential to either bolster or dampen the spirits of crypto investors. The ripple effect of these tweets can sometimes be observed in real time, with significant price shifts following closely on the heels of a notable tweet.
Scientists have researched this phenomenon over the years, searching for data-backed insights into the correlation between Twitter activity and crypto market reactions and explaining how the mechanisms work. Let’s navigate focal highlights illustrating the intricate dance between Twitter discussions and crypto market fluctuations.
How Elon Musk tweets affected crypto
On Jan. 29, 2021, the world witnessed a staggering surge in the price of Dogecoin (DOGE), a cryptocurrency initially introduced as a joke but which has since garnered a substantial following. This surge was notably triggered by tweets from Elon Musk.
To understand the gravity of this event, let us look at the numbers: Before the tweet, Dogecoin was trading at approximately $0.02. However, within a few hours following the tweet, it skyrocketed to nearly $0.08. This represents a substantial increase of over 300%.
A few months later, on May 13, 2021, the crypto community was in for another roller-coaster, once again initiated by Musk’s tweet.
This time, the focal point was Bitcoin (BTC), the flagship cryp
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Author: Ankish Jain
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