I think we can safely say there is an "Elon Musk Effect". Someone should study that, maybe it can be replicated. :D
Look at Tesla, many agree it's overpriced compared to its results, yet it keeps soaring. No matter what. Well, probably based on the perspectives of a pionieering niche, but I wonder, would Tesla be the same without Elon Musk? Probably not.
None of the projects Elon Musk is involved in that I know of is boring. Some are controversial like 'putting electrodes in our brains', but all push the borders of science further.
In the past he was a strong supporter of Doge, the meme coin. What he saw in it, don't ask me, but in the end the coin can be used for Defi and was pumped by WSB by insane percents in a short while.
About a week ago, he put only the word 'bitcoin' (and an explosion emoji) on his Twitter profile. At the time the market was red, and bitcoin at 32k.
In one hour it shoot to 36k and the next hour maxxed at 38k. But then it went back down to 34.5k during the same day, slightly in the green, considering it had a long wick up.
When he added this to his profile Tesla had already bought $1.58 worth of bitcoin as we have just found out. But we didn't know it then.
However even the word of the charismatic (controversial?) Elon Musk wasn't enough. Investors needed proof! Put your money where your mouth is, right?
And the proof came. And what a ride bitcoin had yesterday which continues today to a new ATH at 48k.
Etherium also had a new all-time-high, BNB too, which rose over 100% in the past 7 days. That's from what I noticed in the top 10 at first glance.
I wonder, would the market have reacted the same if Elon Musk had bought $1.5 worth of bitcoin with his personal money?
Even considering the Elon Musk effect, I believe it wouldn't have. In fact, we saw the limitations of his charisma when he put bitcoin on his profile.
Tesla, on the other hand, is a different deal. It's a publicly traded company, and not just any company. If he messes up (which I doubt he did with this particular move), he will answer to stakeholders.
There is a second information that worries me a bit.
That Tesla will accept in the future BTC to buy their cars. And I suppose other big corporations will follow suite.
The positive side of this is bitcoin (and maybe in extenso the crypto world), gets a thumbs up from those corporations which allow it as payment. And they have huge numbers of customers, which will speed up adoption.
The downside is corporations will amass bitcoin while retail will purchase things with it, that way transfering wealth from people to giant entities, without putting pressure on the price.
If this would be done with a crypto currency which is deemed suitable for commerce, instead of one which is considerred the digital gold / store of value, I would have no problem with it.
After all, you don't buy a Tesla with your silver / gold bars, do you?
