Elon Musk is losing power over the crypto community

The “Elon Musk Effect,” a phenomenon that has rocked the crypto ecosystem this year, where every little tweet from the Tesla boss can send crypto prices soaring or plunging, it seems. is losing its luster.

The billionaire has been a major driver of bitcoin and dogecoin volatility, after announcing Tesla’s $1.5 billion bet on bitcoin and praising the potential of meme-inspired coins. Most recently, Tesla’s “breakup” with bitcoin has dragged the market down to value milestones not seen since the beginning of the year.

But by the second half of 2021, Musk’s influence appears to be insignificant.

Elon Musk used to be the man who could control the price of Dogecoin cryptocurrency.

As recently as July 1, Musk tweeted in support of dogecoin with the statement “Liberate Doge!”, along with a meme inspired by the classic movie The Godfather. The price of this virtual currency has increased slightly, but not as much as a few months ago. Earlier in May, dogecoin was up 20% when Musk took a Twitter poll to ask if people would like Tesla to accept the coin as payment.

Then one day on July 2, Musk sent another tweet Six with an image of a man focusing on his laptop and forgetting about the girls around, with the content on the screen. related to dogecoin. But its effect is not much.

Cryptocurrency meme image shared by Elon Musk on July 2.

“It seems that investors no longer listen and eventually realize that a person’s tweets shouldn’t be the deciding factor in whether they buy or sell their assets,” said Alexandra Clark, a trader at the firm. Digital asset brokerage GlobalBlock, said.

Some investors rushed to buy dogecoin throughcoin

Trading app Robinhood says dogecoin accounted for 34% of its crypto revenue in the first quarter of this year. And the company warned its business could be adversely affected if demand for the virtual currency drops and is not replaced by interest in other cryptocurrencies.

As of July 2nd, the price of dogecoin has dropped about 65%, down to around $0.24 since its peak of $0.68 in May.

Critics have also recently criticized Elon Musk and his tweet storm for rattling cryptocurrency prices, as well as accusations of market manipulation. And with millions of people investing in cryptocurrencies today, leaving an individual with too much power in their hands is potentially dangerous, as it can encourage investors to make decisions based on sentimentality or minimal research at all.

Ever since Elon Musk and Tesla broke up with bitcoin, the world’s most popular cryptocurrency has shown signs of a lull. It is currently not much reacting when the billionaire proposed a “promising” outcome of the discussion among bitcoin miners to make the asset more environmentally friendly. Or when he said Tesla would return to accepting it as payment when miners prove they are using 50% clean energy, its value fluctuates only slightly.

Bitcoin is currently trading around $34,000, down nearly 50% from its peak in April. But the value is still up about 15% year-to-date.

It is difficult for crypto investors to make accurate investment decisions, given the immeasurable flow of information from one individual. But the latest signs are suggesting that the crypto investor community may have grown weary of Musk’s tweets, and hoped that its effects could fade away like the currents. previously on the market.

Refer to BI