Since joining the crypto conversation, Tesla CEO Elon Musk has had an outsized influence on market moves. New data, however, suggests that this influence hasn’t always been positive—especially when it comes to Bitcoin.
In their latest report, data aggregator site The Tie and trading platform eToro compared how tweets from Musk and MicroStrategy CEO Michael Saylor have affected the price of Bitcoin and Dogecoin when tweeting about each asset.
The analysis unpacked three phenomena in particular: Average return per tweet, tweet volume per tweet, and investor sentiment following each tweet.
Elon Musk: good for Bitcoin?
Surprisingly, Musk’s tweets about Bitcoin yielded an average negative return of 1.6%. Saylor’s tweets, however, were slightly more bullish, generating an average return of .6%.
It would also appear that the Tesla chief has a much stronger influence over Dogecoin. Crypto investors have been privy to Musk's effects for some time too. In April, he tweeted an abstract painting from Spanish artist Joan Miró and the phrase, "Doge Barking at the Moon."
The cryptic message pushed Dogecoin to a new high of $0.18 at that time.
Average return per tweet from both CEOs. Source: The TIE
Of course, Musk has expressed differing sentiments about Dogecoin and Bitcoin in his tweets. For example, his comments about Bitcoin mining energy exceeding that of medium-sized countries, and his announcement that Tesla would no longer accept Bitcoin for purchases, yielded drops of 11.8% and 13.4%, respectively.
Bitcoin hashing (aka mining) energy usage is starting to exceed that of medium-sized countries. Almost impossible for small hashers to succeed without those massive economies of scale.
This is the only stat, though, in which Musk trails Saylor’s social media activity. When examining investor sentiment following Bitcoin tweets, Musk has a much more bullish influence.
The Tie measures sentiment changes using several proprietary algorithms. A tweet that features words like “bullish,” “surge,” or “buying,” for example, would earn a higher investor sentiment score. Conversely, tweets with words like “bearish,” “drop,” or “selling,” would earn a lower investor score. The quality of the poster is also critical; bots are removed, whereas professional investors and traders are kept.
This data indicates that Musk's tweets tend to generate more positive conversations on Twitter about Bitcoin. Source: The TIE
These two charts suggest that Musk generates far more chatter and social media attention than Michael Saylor. In some cases, this chatter has also resulted in serious material gains (or losses).
Speaking at an online conference called 'The B Word,' Elon Musk said that his aerospace tech company SpaceX has invested in Bitcoin.
"I do own Bitcoin, Tesla owns Bitcoin, SpaceX owns Bitcoin," he said, revealing that he also personally owns Ethereum and Dogecoin. He did not disclose the amounts that he or his companies have invested, though did say that he owns significantly more Bitcoin than Dogecoin or Ethereum.
According to the official website of 'The B Word,' the conference “aims to explai...
Musk and Saylor's impact on Bitcoin
Each CEO commands a huge number of followers on Twitter and thus whenever either Musk or Saylor comments about Bitcoin, they’re sure to spark a conversation throughout the Twitterverse—whether bullish or bearish.
For example, the average number of tweets about Bitcoin or Dogecoin following a comment from either Musk or Saylor is substantial. When Musk tweets about Bitcoin, the number of tweets about the cryptocurrency increases by 44%. Saylor’s contributions move the needle 4.1%.
Tweets from Musk about Dogecoin generate much more chatter on Twitter than those about Bitcoin. Image: The Tie
Combining social media activity from Twitter whales with Bitcoin’s native volatility makes for a heady concoction.
But for those attempting to trade on said tweets, The TIE offers a word of caution.
“While these opportunities can be lucrative, investors should be cautious of trying to ride the back of the tweets as more often than not, the price of BTC and DOGE have retraced after their tweet fuel pumps,” the report concluded.
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
Crypto exchange provider Coinbase Global receives half of Circle’s residual revenue generated from reserves backing its USDC stablecoin, according to new details disclosed in Circle's IPO filing.
In an S-1 filing submitted to the Securities and Exchange Commission on Tuesday, Circle revealed Coinbase receives 50% of the “residual payment base”—a portion of revenue explicitly derived from reserves backing Circle’s flagship stablecoin pegged 1-to-1 to the U.S. dollar.
Circle generates income prima...
Stablecoin issuer Tether Holdings purchased 8,888 Bitcoin in the first quarter, adding $735 million worth of the asset to its reserves on Tuesday alongside its latest attestation report.
The company managing Tether’s industry-leading footprint now controls $7.8 billion worth of Bitcoin, according to the blockchain data platform Arkham Intelligence. Three months ago, Tether padded its reserves with $777 million worth of Bitcoin.
Tether meanwhile reported record-breaking profits of $4.5 billion th...
Tokyo Stock Exchange-listed firm Metaplanet just grabbed another 696 Bitcoin (BTC)—its most recent step in a bid to build one of the largest corporate Bitcoin treasuries in the world.
The Japanese investment company said it had acquired the coins as part of its Bitcoin Income Generation strategy, which involves selling put options and using the collateral to purchase Bitcoin at an effective discount, in a statement released Tuesday.
*Metaplanet Purchases Additional 696 $BTC* pic.twitter.com/ppn...
