Elon Musk, the CEO and founder of Tesla, has once again demonstrated the ‘Musk’ effect as he directly influenced the price of the cryptocurrency, SHIBA INU. Earlier this week, the tech billionaire tweeted about the arrival of his new Shiba Inu Puppy names ‘Floki’. This resulted in SHIBA INU surging to 40 per cent on Friday morning. At the time of this article, the coin was trading green at 34.58 per cent over a 24-hour period. Over the course of the week, the coin had traded up by 25.92 per cent. The price of SHIBA INU stood at $0.000009046, with a market cap of $3.07 billion and a trading volume of 1,101 per cent.
It should also be noted that SHIB jumped 21 per cent after its recent listing on Coinbase, according to TechStory. This comes after Coinbase put it out there that the platform is looking to add all the tokens. Thus far, SHIB has proven to be a fan favourite, leading Coinbase to pour in added support for the altcoin in terms of deposits and withdrawals in order to maintain liquidity.
Parallelly, the long-time running favourite cryptocurrency of the Tesla CEO, Dogecoin has also been seeing an upward trend recently. At the time of this article, the price of the altcoin stood at $0.2572 which indicated that it was trading green at 4.64 per cent over the past 24 hours. The coin was also trading green over the course of the last seven days at a rate of 0.75 per cent, with a market cap of $33.39 billion. It is not just Dogecoin that has seen a positive change but also related altcoins such as Baby Doge, following the tweets Musk had recently put out.
This is not the first time that Musk’s Twitter feed kicked up a storm in the cryptocurrency world. There seems to be some form of invisible force that drives the prices up and down with each comment that the electric car maker issued on his social media.
In May of 2021, Dogecoin prices soared after Musk said that he was working with the developers to improve efficiency as a means of payment. The altcoin which was initially brought into being as a meme initially, rose to prominence as it traded over 30 per cent following that tweet and reached prices as high as $0.56 according to reports by Bloomberg.
Bitcoin, one of the most popular and highest-ranking coins on the market, is also subject to the infamous ‘Musk’ effect. In fact, one could argue that the Musk effect got its infamy from the cause-and-effect relationship with Bitcoin. Either way, the same period in 2021 saw Bitcoin prices dip well below the $45,000 mark after the billionaire said that Tesla might divest what at one point was a $1.5 billion stake in the digital asset.
In the end, Bitcoin did steady after Musk said that Tesla didn’t sell from its holdings in the token. Inversely, when attending an event called ‘The B Word’, alongside Twitter CEO Jack Dorsey, Musk had said that he wanted to see Bitcoin succeed and that outside of his holdings in SpaceX and Tesla, Bitcoin was the largest. This saw the price of Bitcoin surge from its all-time low to above $32,000 on July 22. Bitcoin rose almost 8 per cent on that day following Musk’s comments.
The tech billionaire has often been the source of the fluctuating price of crypto, especially over the last few months. With his interest now fixed on SHIBA INU and Dogecoin, one can only speculate as to the rise in popularity that these coins might see in the near future. However, one thing is for certain, the ‘Musk’ effect is a very real thing, so keeping an eye on his next tweet is definitely a must for crypto investors.