Elon Musk’s tweets still shake up crypto prices, but his power seems to be changing in 2024. Remember when he could send Dogecoin to the moon with just a few words? Those days might be fading.
Last week, Musk posted about crypto on his social media platform X. Within minutes, several meme coins jumped 5-10% in value. That’s still impressive, but nothing compared to the 20-30% swings we saw in 2021. Back then, when Musk called Dogecoin “the people’s crypto,” its price shot up by nearly 50% in a single day.
“Musk’s influence is evolving rather than disappearing,” says Maria Chen, crypto analyst at DigitalAsset Research. “The market has matured, and traders are becoming more selective about which of his statements they act on.”
What’s changed? The crypto market has grown up a bit. More institutional investors have entered the space, and they typically make decisions based on fundamentals rather than celebrity tweets. Plus, regular traders have learned that Musk-driven price spikes often don’t last long.
Jake Williams, a 28-year-old crypto trader from Seattle, learned this lesson the hard way. “In 2021, I bought Dogecoin after Musk tweeted about it. The price doubled, but I got greedy and didn’t sell. Then it crashed, and I lost most of my investment.”
Today, Williams approaches Musk-related market movements differently. “Now I might make small, quick trades when he tweets, but I don’t bet the farm anymore.”
Data from CryptoCompare shows that the average price impact of Musk’s crypto-related statements has decreased by roughly 60% since 2021. Still, his comments continue to create trading opportunities for those quick enough to act.
Some tokens remain more sensitive to the “Musk effect” than others. Dogecoin, his long-time favorite, and other dog-themed coins like Shiba Inu still respond strongly to his mentions. When Musk changed Twitter’s logo to Dogecoin’s Shiba Inu dog last year, the coin jumped 30% before settling back down.
Market experts suggest several reasons for Musk’s declining crypto influence. The novelty has worn off, for one thing. And after Tesla sold most of its Bitcoin holdings in 2022, some crypto enthusiasts felt betrayed.
“There’s a growing skepticism about celebrity endorsements in general,” explains Dr. Sarah Johnson, professor of financial markets at Columbia University. “Investors are increasingly looking at fundamentals like adoption rates, development activity, and real-world applications.”
Still, Musk remains a force in crypto, especially when he connects his business ventures to blockchain technology. Rumors about Tesla accepting cryptocurrency again or X integrating crypto payments can still move markets significantly.
For new crypto investors, experts recommend caution around celebrity-influenced price movements. “Consider why you’re buying a particular cryptocurrency,” advises Chen. “If your only reason is that Elon Musk mentioned it, that’s probably not enough.”
Trading platforms report that Musk-related market volatility creates both risks and opportunities. “We see trading volume spike within minutes of Musk tweeting about crypto,” says Michael Torres, spokesperson for a major exchange. “But successful traders plan their exit strategy before they even enter these trades.”
The changing nature of Musk’s crypto influence reflects the market’s ongoing maturation. While his tweets once seemed all-powerful, today they’re just one factor among many that shape cryptocurrency prices.
For those still looking to trade the “Musk effect,” timing is everything. The biggest price movements typically happen within the first 30 minutes after his statements, with prices often returning to previous levels within 24 hours
