Red Crypto Day - Did Elon Musk's Tweets affect buyers?

It is very normal to witness every once in a while, a red day in the cryptocurrency market. Several factors usually come at play, like profit-taking, a weaker buying momentum, especially on the weekends. Recently, Elon Musk’s tone on Twitter seemed to take a turn to the negative, as it seems that he’s trying to divert attention. Can those tweets really affect the market significantly, or was it just a normal red crypto day?

Coins that lost the most

In the last 24 hours, those top 20 coins lost the most:

Monero (XMR): – 8.4 %
Ripple (XRP): – 6.6 %
Litecoin (LTC): – 5.8 %
Bitcoin Cash (BCH): – 5.4 %
Cosmos (ATOM): – 5.02 %

Although some coins lost and consolidated, others managed to keep gaining:

Uniswap (UNI): + 19.2 %
Cardano (ADA): + 6.4 %
Sushiswap (SUSHI): + 6.3 %

Although most coins consolidated or lost a bit in their market caps, the winning coins managed to push back and offset the difference. The whole cryptocurrency market cap ended up gaining 0.71% in the last 24 hours, but this might signal an upcoming strong bear market.

**Fig.1** Total market cap 4-hour chart showing a small adjustment in prices – TradingView

Did Elon Musk Tweets affect the Crypto Market?

Elon Musk recently changed his tone in regards to cryptocurrencies, and specifically Bitcoin and Dogecoin:

Encouraging Dogecoin holders to dump the coin
Saying BTC is not much better than cash

If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue imo.
— Elon Musk (@elonmusk) February 14, 2021

He also gives hints that $BTC is almost as bullshit as fiat money
— RNC (@Rapataux) February 20, 2021

It is very likely that this shift in Elon’s tone towards cryptocurrencies, would in fact affect the cryptocurrency market. Most big buyers are institutional investors and crypto enthusiasts, and might get affected by Elon’s tweets. If we take a percentage of his following doing exactly what he tweets, the effect might influence actual markets, having a snowball effect downwards.

Stay Ahead, Stay Updated
Rudy Fares