When it comes down to factors that influence price rallies in the crypto market, nothing seems to come close to the “Elon Effect,” a term that has been used by industry enthusiasts to describe the impact that the world’s richest man has on digital currencies. The Elon Effect is very visible throughout Dogecoin’s price performance timeline.
He recently shared a cryptic tweet, which many have pointed to as the reason behind DOGE’s fresh upswing. From Coinbase’s chart, Dogecoin has rallied by 185% in the last 24 hours; the biggest price pump the currency has recorded in a single day.
The tweet that triggered the bulls to react? A cryptic picture from the billionaire, in which a painting of a dog barking at the moon is captioned “Doge barking at the moon.” The Dog painting, which is currently being housed in the Philadelphia Museum of Art was created by the Spanish painter Joan Miró, who named it “Dog barking at the moon.”
To imply that Dogecoin has hit $0.38, and is currently headed towards 40 cents because of Musk’s tweet is a very valid take. One that the hedge fund manager David Einhorn could agree with, seeing as he recently wrote that Elon Musk was the jet fuel to GameStop.
In a letter to his investors, Einhorn writes in confidence, associating the highly publicized event of retail investors snatching $6 billion from Wall Street and throwing it into GameStop’s stock with Elon Musk and Chamath Palihapitiya’s input.
“We note that the real jet fuel on the GME squeeze came from Chamath Palihapitiya and Elon Musk, whose appearances on TV and Twitter, respectively, at a critical moment further destabilized the situation,” he wrote, according to Business Insider.
Interestingly, Musk’s only input during the Gamestop saga was a short tweet “Gamestonk!!” which many instantly decoded as a show of support from the Billionaire.
Even as Musk downplays his impact on the market, analysts insist that highly influential figures like Musk can always sway market prices with their takes.
“But why Elon Musk?” Many have quizzed. Wondering why the billionaire’s impact in the cryptocurrency and stock market is more pronounced than his peers. Musk himself may not know the answer to that question as he himself undermines his influence in the market. But word on the streets of crypto-twitter has it that Tesla and SpaceX’s outstanding performance, as well as Musk’s welcoming reception to cryptocurrencies, are among the many reasons why he continues to “jet fuel” the market to new levels.