There has always been a special relationship between Cryptocurrency and Elon Musk because
this individualist business tycoon has often used Twitter to express his views which have always impacted the price movements in a significant way.
After the announcement that the owner of SpaceX and Tesla, Elon Musk was going to be the
sole owner of social media giant Twitter, the price of Dogecoin rose, and so did other major coins like Bitcoin and Ethereum.
Elon Musk has been quite taken with Dogecoin for quite some time and he often tweets about it, and whenever he does, the price of Dogecoin skyrockets. Now consider, if a small tweet can result in a price rally for a coin, how much it would affect the price now that he has acquired it.
Dogecoin experienced a price increase of 20% while reaching a high of USD 0.1675 after the announcement of this deal. Now that Elon Musk, the biggest supporter is at the helm of this social media platform, the price is sure to hike more. Earlier in 2022, Musk had toyed with the idea that DOGE can be accepted as the payment method for Twitter Blue which offers a premium subscription service. In a Twitter conversation with a user from Argentina, he hinted so while referring to the monthly subscription of USD 3 for Twitter Blue.
Now, Dogecoin was not the only token to experience a rise. Elon Musk has always shown his
active support for cryptocurrency as well as the underlying technology. Hence, his purchase of Twitter has resulted in the lifting of many cryptocurrencies.
As per the data of CoinMarketCap, Ethereum and Bitcoin saw an increase of 4.73℅ and 3.47%
respectively. Other cryptocurrencies such as Cardano and Solana have also experienced small price hikes.
For some time, Elon Musk has been a pro-Bitcoin while Tesla, his electric car company holds BTC worth USD 1.211 Billion. While changing his Twitter bio with #Bitcoin, Musk had stated on Clubhouse, the audio chat app to the audience that he has been a supporter of BTC even though he was a bit late to join the gang and he also mentioned that Bitcoin remains on the brink of achieving wide acceptance by the conventional finance people.
Besides, last year Twitter added the feature of Bitcoin tipping that enables users to indulge other crypto users for insights. After some months, Ethereum also got the tipping option. In the interview with Decrypt, one Twitter spokesperson stated that they were excited to add Ethereum with Bitcoin to make payments in Tips that enabled more users to participate in the digital economy with minimal friction. Therefore, this move might also bring good results for Ethereum and Bitcoin.
Many users from the cryptocurrency industry expressed their thoughts regarding the deal and its effect on the future of crypto. Many veterans of the industry and notable figures showed significant support for this new ownership of Twitter and most of the crypto community considered this deal in a positive light.
The owner of the crypto exchange forum Gemini, the renowned Winklevoss twins stated that in retrospect, there was an inevitability that Musk would purchase Twitter and they also questioned whether he would consummate Twitter purchase in DOGE.
Michael Saylor, who is among the renowned Bitcoin whales and CEO of Microstrategy, has congratulated Musk and mentioned the first amendment to the constitution of the United States while speaking about the free speech promised by Musk on Twitter. He tweeted that Congress would not make any law to respect the establishment of the religion or stopping its free exercise, reducing freedom of speech or that of the press, or the right of people to assemble peacefully and to give petition the government for redressing grievances.
Billy Markus, founder of Dogecoin also tweeted while asking whether Elon Musk could purchase SEC –it was regarding SEC going gradually to approve different Bitcoin ETFs. Musk got funding from different sources such as Morgan Stanley, as well as other lenders and even took loans against his stocks of Tesla.
Previously, Elon Musk had commented on how Twitter lacks in giving well-deserved freedom
of speech to users of that platform and that he would reform the gap after gaining control of the company. He even stated that his focus would be on removing spam and trolling accounts from Twitter.