On Friday, June 4, the price of bitcoin fell by more than 5% after yet another tweet by Elon Musk mentioning digital gold.
The founder of Tesla posted a meme featuring a quote from Linkin Park’s song ‘In the End’. To the post he added the tag #Bitcoin and a broken-heart emoji.
#Bitcoin 💔 pic.twitter.com/lNnEfMdtJf
— Elon Musk (@elonmusk) June 4, 2021
Later, the entrepreneur supplemented the post with another meme that mocks investors who lost money on the price decline.
— Elon Musk (@elonmusk) June 4, 2021
After Musk’s tweets, the price of the leading cryptocurrency fell below $37,000. At the time of writing, digital gold is trading at around $36,935.
According to CoinGecko, all assets in the top-10 by market capitalization were in the red.
One of the co-founders of Dogecoin (DOGE), Billy Markus, commented on Musk’s tweet with words from the same song. In response, the head of Tesla replied with another meme, after which the cryptocurrency’s price also began to fall.
— Elon Musk (@elonmusk) June 4, 2021
Over the last 24 hours, Dogecoin’s price has fallen by almost 8%. At the time of writing, the cryptocurrency trades at around $0.37.
Positive reaction to Musk’s activity on Twitter came from CumRocket Crypto (CUMMIES), a project token in the adult content industry. After the Tesla founder posted a message containing the words “Canada, USA, Mexico” [Canada, USA, Mexico], the coin surged more than 85%.
Great thread 🤣
— Elon Musk (@elonmusk) June 4, 2021
In the wake of Musk’s messages, Binance founder Changpeng Zhao urged users not to be swayed by manipulation, adding the hashtag #HODL. He also stressed that this is \”Not financial advice\”, but did not specify why he posted the tweet.
Don’t be manipulated. #HODL
Not financial advice.
— CZ \uD83D\uDD0A Binance (@cz_binance) June 4, 2021
The market for digital assets is highly sensitive to the entrepreneur’s statements — in the press, the term \”Elon Musk Effect\” has even appeared, denoting a rise in an asset after being mentioned by the head of Tesla.
In May, Musk’s tweet triggered a 20% rise in the price of DOGE. Earlier in the same month, Musk said that Tesla halted sales of electric vehicles for Bitcoin. Against this backdrop the price of digital gold collapsed to $45,700.
As a reminder, Musk’s tweets about Tesla must be approved by a lawyer. Media reports indicate that the U.S. Securities and Exchange Commission believes that the entrepreneur has already twice violated this requirement.