Elon Musk tweeted that Tesla would suspend vehicle purchases using Bitcoin due to environmental concerns. This tweet caused Bitcoin's price to drop from around $54,000 to below $50,000 within hours in that time. It is a decline of approximately $4,000 per Bitcoin which is huge that time before 2020. Similarly, in June 2021, Musk tweeted positive sentiments about Bitcoin & Tesla potentially accepting Bitcoin payments again. This tweet contributed to a rapid increase in Bitcoin's price by several thousand dollars over a short period.
Reddit communities like r/CryptoMoonShots have orchestrated pumps for lesser-known cryptos. This is a significant factor of price increases. For example, a coordinated effort on Reddit could lead to a relatively unknown altcoin increasing in value from a few cents to several dollars per token within hours. It would have been potentially translating into millions of dollars in market capitalization. Increased social media mentions and positive sentiment around specific crypto can lead to heightened trading volumes & liquidity.
A surge in Twitter mentions & Reddit discussions about a new DeFi (Decentralized Finance) project could result in millions of dollars worth of trading activity as investors buy & sell tokens especially based on community sentiment. Simple news of regulatory positive signs can create a huge impact in the market that was experienced in the past. Such kind of news creates a huge impact as investors adjust their positions based on perceived regulatory risks or opportunities. Quantifying precise USD values for social media impacts requires a detailed analysis of specific events. I shall try to cover some statistics of that kind in my next post.
~ Regards,
VEIGO (Community Mod)
We're die-hard fan of Tron Blockchain
