Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk’s comments on social media platform Twitter caused the price of Bitcoin (CRYPTO: BTC) to fall and Dogecoin (CRYPTO: DOGE) to rise in the second quarter, sentiment-driven analysis from eToro USA and the TIE showed.
What Happened: On average, Bitcoin prices declined by 1.6% within the 24 hour-period after Musk’s tweets related to the apex cryptocurrency in the quarter, according to the report. Meanwhile, Musk’s tweets on Dogecoin contributed to an average 8.4% increase in the meme cryptocurrency’s price during the next 24 hours.
Despite the negative impact on the price, Musk’s bitcoin-focused tweets positively affected investor sentiment by 23.5% and also contributed to a 44.4% surge in Bitcoin-related tweet volume and Dogecoin-related tweet volume surged by 99.7% within 24 hours of his tweets.
See Also: How To Buy Bitcoin (BTC)
The report also showed how Musk and MicroStrategy Inc. (NASDAQ:MSTR) CEO Michael Saylor influenced the overall conversation on Twitter about the two cryptocurrencies in the quarter.
Why It Matters: The report highlights the impact Musk and Saylor had on the sentiment and price of two prominent cryptocurrencies in an extremely volatile second quarter. Musk has more than 58 million followers on Twitter.
The tech tycoon has been accused of being a “manipulator,” who is using his position and massive Twitter following to influence the cryptocurrency market. Dogecoin has shot to prominence this year, in major part due to endorsement from Musk.
The Tesla CEO’s Dogecoin endorsements prompted the U.S. Securities and Exchange Commission to caution investors in May not to make investment decisions just because an investment has been recommended by “someone famous.”
Price Action: Bitcoin is down almost 3.8% during the last 24 hours, trading at $36,652.52 at press time, while Dogecoin traded almost 5.9% lower at $0.1981 over the last 24 hours.
Photo by Heisenberg Media on Flickr