Key Insights:
- On Wednesday, Elon Musk briefly changed his Twitter profile image to a Bored Ape Yacht Club image, driving APECoin (APE) into a frenzy.
- Musk has a similar impact on Dogecoin (DOGE) and Shiba Inu Coin (SHIB), and even Bitcoin (BTC).
- The Elon Musk influence brings into question the ethos of decentralization.
Elon Musk, the world’s richest man, is no stranger to cryptocurrencies. In January 2021, the Tesla (TSLA) CEO showed his power over the crypto market by simply changing his Twitter account description to #bitcoin.
On Jan. 29, the Bitcoin (BTC) response was evident, surging from a day low of $31,996 to a day high of $38,632 before easing back.
In February of last year, Musk delivered further BTC price action with news of Tesla acquiring $1.5 billion in BTC. Once more, the Musk influence was evident, with BTC responding to the news.
Since then, Musk has continued to show his influence on the crypto market, with DOGE, SHIB, and now APE at the mercy of Musk’s Twitter account.
Musk Twitter account causes APECoin frenzy
On Wednesday, Elon Musk flexed his crypto muscles via his heavily influential Twitter account. By simply changing his Twitter profile picture to a Bored Ape Yacht Club NFT image, APECoin surged from $14.51 to a day high of $17.64, before easing back. APE holders enjoyed a 21% breakout within a 45-minute time span.
APE joined a growing list of cryptocurrencies that have fallen under Elon Musk’s spell. Dogecoin (DOGE) and Shiba Inu Coin (SHIB) have long been under the influence of Elon Musk.
APE joins DOGE as an Elon Musk dependent
Over the last 12-months, Musk’s influence on DOGE and SHIB has been unquestionable. Last month alone, DOGE investors faced heightened volatility as the global financial markets responded to Musk’s Twitter purchase.
On April 5 and April 25, two spikes were evidence of the Musk Spell. The April 5 breakout came in response to news of Musk taking a $3 billion stake in Twitter.
The April 25 breakout came in response to renewed talk of Musk buying Twitter, which briefly took DOGE into the crypto top ten by market cap.
Musk brings into question the ethos of decentralization
Since Tesla’s purchase of $1.5 billion in BTC, questions have surfaced over the influence of one person on the crypto market.
There has yet to be any regulatory scrutiny on the Musk influence despite the US Securities and Exchange Commission’s stance on cryptocurrencies.
For the crypto market, the Musk influence raises questions over the ethos of decentralization. The impact of a Musk Tweet on APE, BTC, DOGE, and even SHIB removes the concept of decentralization.
While crypto investors going long may appreciate the Musk influence, investors shorting APE, DOGE, and SHIB walk a treacherous path, with Musk able to create a price spike with a simple tweet.
