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Let go of Warren Buffet, a new market scholar who has the attention of investors. At least, investors are interested in buying cryptocurrencies joke.
That’s right: Elon Musk. A tweet to his 45 million Twitter followers sent the Dogecoin cryptocurrency “meme” on Thursday.
The head of Tesla and founder of SpaceX was a vocal advocate of the Reddit crowd during the GameStop saga, and a word from him can cause investors to accumulate shares in the company.
Where does the power to move the Musk market come from? He is a profoundly attractive figure to many amateur investors, who see him as an independent genius whose Tesla electric car company has defied Wall Street pessimists.
In addition, people can negotiate the savings they have accumulated during the lockdown on commission-free apps like Robinhood. So why not follow Musk’s direction?
Neil Wilson, chief market analyst at the UK’s Markets.com trading platform, told Insider that he finds it “somewhat worrisome that people’s financial interests depend on their tweets – but it’s up to them if they want to be in those assets. “
For better or worse, investors are increasingly aware of Musk’s tweets. Here are 6 times that he changed the market.
1. Elon Musk sent Dogecoin shooting 60% in minutes with a tweet
On Thursday, the Dogecoin cryptocurrency rose 59% at times.
Why? Because Elon Musk returned to Twitter after an absence of two days to post a photo based on the film Lion King that showed him holding Doge, the Shiba Inu dog meme on which Dogecoin is based.
The digital currency hit a high of $ 0.0579 on Thursday, although that has been somewhat since the historic high of $ 0.0792 reached in January. On Friday morning, Dogecoin fell about 11% to $ 0.0457.
Read More: Investors are moving to trade Dogecoin and other major digital tokens on Voyager. Its CEO says Bitcoin will reach $ 100,000 this year
2. Musk helped fuel the GameStop frenzy
One of Musk’s most visible interventions in the markets took place in late January, when he entered the day-trading frenzy that caused GameStop’s stock to skyrocket and hedge funds to destroy.
On January 26, after the markets closed and as interest in GameStop shares increased among Reddit social network day traders, Musk simply tweeted “Gamestonk !!” with a link to the Reddit Wall Street Bets forum.
The next day, GameStop’s stock shot up 157% and closed 135% higher, with Wall Street Bets members widely discussing Musk’s tweet. GameStop dropped a week later, however, to $ 70.15 on Friday.
The Wall Street Journal reported that a hedge fund that had bet on GameStop decided to leave after Musk’s tweet. Senvest Management ended up winning $ 700 million.
3. The Tesla boss sent investors to the wrong signal
One of the most bizarre examples of the power to move Musk’s market saw investors huddle in a company called Signal after the SpaceX boss tweeted about it. The only problem was that it was the wrong signal.
The shares of Signal Advance, a small medical technology company, shot up more than 11,000%, reaching $ 70.85, from $ 0.60 before Musk’s tweet.
Investors seem to have confused Signal Advance with the encrypted messaging platform that Musk praised in a two word message: “Use signal.”
Read More: A fund manager who has defeated 97% of his peers in the past 5 years shares 6 of the actions he is most optimistic about, as Biden takes a more friendly approach to marijuana and electric vehicles
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4. He made Bitcoin increase with a hashtag
Bitcoin is a big market, with a capitalization of more than $ 600 billion. But Musk caused the price of each coin to skyrocket by more than 15% in late January, simply by adding the word “#bitcoin” to his Twitter profile.
Bitcoin’s price reached a high of $ 38,406 on January 29, having spent most of the week in a range between $ 31,000 and $ 33,000.
Edward Moya, senior market analyst at the Oanda exchange platform, said in a note: “Bitcoin got lost in GameStop mania and Musk’s tweet brought cryptos back into the spotlight.”
Bitcoin rose about 3% on Friday morning to $ 38,103.
5. Art and craft retailer Etsy was caught by the Musk effect
Etsy’s shares jumped up to 8% on January 26, although they closed lower.
What was behind the peak? Now, Elon Musk saying he bought a “hand-knitted wool Marvin the Martian” helmet for his dog, of course.
His satisfaction with his purchase made Chief Tesla Tweet “I kind of love Etsy” and that the company’s stock price will skyrocket early in the day.
Read More: A top manager at a company that deals with $ 50 billion in wealth told us 4 ways that investors can intelligently play day-trading favorites like GameStop without risking everything
6. Musk’s techno tweet drives the obscure gold miner
It is perhaps the strangest moment of movement in the Musk market. On his return to Twitter last week, he said “Sandstorm is a masterpiece”, probably referring to Darude’s 2000 hit song.
Day traders looked for meaning in the stock market, sending shares in Sandstorm Gold – a $ 1.3 billion Canadian gold miner – that shot up 55% in pre-market trading.
The rise was short-lived, however, with the stock dropping 1% just before the start of the normal trading session.