Pool / Getty Images
Moving on to Warren Buffet, a new market has ears for investors. At least, investors interested in buying funny cryptocurrencies.
That’s right: Elon Musk. A tweet to its 45 million Twitter followers on Thursday raised the “meme” cryptocurrency Dogecoin.
The Tesla boss and SpaceX founder was a big proponent of the Reddit crowd during the GameStop saga, and one word from him could send investors into a company stake.
Where does Musk’s market-moving power come from? He is an extremely attractive figure to many amateur investors, who consider him a genius carrier, whose electric car company Tesla has pitted the Wall Street nayers.
In addition, people can trade the savings they built up during lock-in in commission-free programs like Robinhood. Why do not you follow where Musk leads?
Neil Wilson, chief market analyst at UK trading platform Markets.com, told Insider he thinks it’s worrying in some ways that people’s financial interests are on the verge of his tweets – but it depends on them whether they want the assets be. “
Good or bad, investors are increasingly aware of Musk’s tweets. Here are six times he has moved markets.
1. Elon Musk raised Dogecoin by 60% within minutes with a tweet
On Thursday, cryptocurrency Dogecoin rose as much as 59% in just a few moments.
Why? Because Elon Musk returned to Twitter after a two-day absence to post a photo based on the movie Lion King which show him to stop Doge, the meme Shiba Inu dog on which Dogecoin is based.
The digital currency hit as high as $ 0.0579 on Thursday, though it was a measure of the daily high of $ 0.0792 reached in January. As of Friday morning, Dogecoin has fallen about 11% to $ 0.0457.
Read more: Investors are flocking to trade Dogecoin and other hot 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 drastic market interventions comes at the end of January, when it lapses into the day-trading frenzy that is pushing GameStop shares up and having battered hedge funds.
After markets closed on January 26, and as interest in GameStop shares among day traders picked up on the social networking site Reddit, Musk simply tweeted “Gamestonk !!” with a link to the Reddit forum Wall Street Bets.
The next day, GameStop’s shares rose to 157% and closed 135% higher, with members of Wall Street Bets widely discussing Musk’s tweet. GameStop tumbled to $ 70.15 a week later, however.
The Wall Street Journal reports that one hedge fund that bet on GameStop has decided to come out after Musk’s tweet. Senvest Management eventually earned $ 700 million.
3. Tesla chief warns investors the wrong signal
One of the more bizarre examples of Musk’s market-moving power caused investors in a firm called Signal to pile up after the SpaceX boss tweeted about it. The only problem was, it was the wrong Signal.
Shares of Signal Advance, a small medical technology company, rose more than 11,000% to $ 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 beaten 97% of his peers over the past five years shares 6 of the stocks he is best at because Biden takes a friendlier stance against cannabis and electric vehicles.
Yuriko Nakao / Getty Images
4. He spiked Bitcoin with a hashtag
Bitcoin is a large market with a capitalization of over $ 600 billion. But Musk raised the price of each coin by more than 15% at the end of January by simply adding the word “#bitcoin” to his Twitter profile.
The Bitcoin price rose to $ 38,406 on January 29 after spending between $ 31,000 and $ 33,000 most of the week.
Edward Moya, senior market analyst at currency platform Oanda, said in a comment: “Bitcoin got lost in the GameStop mania and Musk’s tweet brought cryptos back into the spotlight.”
Bitcoin rose about 3% to $ 38,103 on Friday morning.
5. The art dealer Etsy got caught up in the Musk effect
Etsy’s shares jumped to 8% on January 26, although it closed lower.
What was behind the peak? Elon Musk said he obviously bought a “hand-knitted wool Marvin the Martian” helmet for his dog.
His satisfaction with his purchase caused the head of Tesla to tweet ‘I quite like Etsy’ and that the share price of the company will rise immediately in the early trading.
Read more: A managing executive at a $ 50 billion-wealthy business told us 4 ways investors can play smart day-trading favorites like GameStop without risking anything.
6. Musk’s techno tweet reinforces obscure gold miner
This is perhaps the strangest of Musk’s market-stirring moments. With his return to Twitter last week, he said “Sandstorm is a masterpiece”, probably refers to the hit 2000 song by Darude.
Day traders sought meaning in the stock market and sent shares in Sandstorm Gold – a $ 1.3 billion Canadian gold miner – which rose to 55% in pre-market trading.
The rally, however, was short-lived, but the share fell by 1% just before normal trading began.