Over the past few years, strategic endorsements, cryptic tweets, and business moves by Elon Musk have rocked the cryptocurrency market with significant price fluctuations. Today, he is creating a native cryptocurrency on the X platform under the temporary name X Money.
If and when that happens, the project could turn X (e.g., Twitter) into a complete financial system, turning Musk into an overnight competitor to traditional banking systems as well as traditional cryptocurrency payment systems. Others believe this could be Musk's effort to create a decentralized alternative to PayPal and traditional financial technology platforms, leveraging the huge user base of X to drive its adoption.
Musk factor
When Elon Musk targets Dogecoin, the market takes notice. His influence becomes undeniable when a single tweet causes a sharp price increase. In December 2020, a seemingly ordinary tweet, 'One word: Doge', triggered a 20% price surge within a few hours.
By May 2021, after Musk appeared on Saturday Night Live, Dogecoin skyrocketed to $0.73, marking an astronomical growth of over 10,000% compared to the previous year. However, this excitement did not last long, as Musk joked that Dogecoin was a 'hustle' on national television, causing the price to collapse immediately.
This cycle repeats as Musk continues to reveal integration with Tesla, Twitter ( is currently X) and even SpaceX. Each hint of applying Dogecoin creates waves in the market, illustrating an unprecedented case of price manipulation driven by social media.
Market Impact Analysis: Correlation of Price Volatility
Looking closely at the price fluctuations of Dogecoin reveals an undeniable link between Musk's interest and its price. From December 2020 to May 2021, Dogecoin surged from $0.003 to an all-time high, over 24,000%. The following year, as Musk's attention shifted elsewhere, it dropped by 90%, demonstrating its speculative volatility.
When Musk proposed accepting Dogecoin as payment on Twitter in early 2023, the price of this coin surged by 30% in just one day, demonstrating that his influence has not diminished.
On the other hand, the broader cryptocurrency market tends to reflect the highs and lows of Dogecoin, highlighting Musk's greater influence. When Tesla announced that they would no longer accept Bitcoin due to environmental concerns, the entire market plummeted, with Dogecoin losing 40% of its value in just a few days.
Dogecoin is not the only token related to Musk that has experienced extreme price fluctuations. The rise of coins inspired by Musk, such as ElonCoin, MuskSwap, and even imitation tokens like Dogelon Mars, follow a similar trajectory. In 2021, Dogelon Mars ($ELON) surged 4,000% in less than a month, driven by speculation that Musk will support it.
Similarly, Musk's spontaneous social media posts have caused ElonCoin to surge over 600% in just one week before quickly dropping back. Just Musk's involvement in cryptocurrency - intentional or not - also immediately distorts the market.
Legal meaning and regulations
Musk's market-shaping tweets have not escaped regulatory scrutiny. In 2022, a class-action lawsuit alleged that he deliberately manipulated the market, artificially inflating the price of Dogecoin before selling to make a profit. While Musk dismissed the lawsuit as frivolous, regulators, especially the SEC, have increased monitoring of market activities driven by influential individuals.
'If successful, the lawsuit could set a precedent for tighter oversight in the cryptocurrency market, potentially curbing speculative cycles,' Kar Yong Ang explained. 'Such intervention could reshape the industry, making it less susceptible to manipulation but also reducing the high-risk, high-reward nature that attracts many traders,' the expert concluded.
Future prospects: Market prediction
'Musk effect' wider than continues to fuel the frenzy of speculation in the cryptocurrency market. This effect is not limited to Musk's own initiatives: coins associated with his public image, family, and even unrelated memes tend to increase exponentially in value.
Recently, themed memecoins about Trump and Melania have created a new wave of speculative trading. Meanwhile, Musk himself continues to indirectly influence the meme coin space. His recent online antics, such as changing his name to 'Harry Bōlz' on X, coincided with a sudden $28 million surge in trading volume in niche tokens, demonstrating how market-moving actors can stem from seemingly mundane events.
Consider investment and risk assessment
With Musk's ability to participate in the cryptocurrency market directly through X Money, the context could change significantly. Unlike Dogecoin, which is still mainly speculative and community-driven, a financial token backed by Musk could introduce tangible use cases, especially in X's expanding payment ecosystem.
The main risk factors for investors include:
Regulatory uncertainty: Regulators are closely monitoring Musk's financial projects, and any potential legal challenges could impact the development of X Money. Market volatility: If history is any indication, Musk's cryptocurrency projects tend to cause significant market fluctuations, benefiting early adopters but posing risks for those entering the peak excitement cycle. Adoption challenges: For X Money to succeed, it must offer compelling advantages over existing payment solutions such as PayPal and USDC-supported stablecoins. Adoption will depend on effective integration with financial services on the X platform.
Despite these risks, Musk's potential to disrupt the digital payment space cannot be ignored. If X Money launches successfully, it could become a dominant force in financial technology, further strengthening Musk's influence on the global market.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
Musk, Memecoin And The Cryptocurrency Market: Expert View Of Octa Broker
Over the past few years, strategic endorsements, cryptic tweets, and business moves by Elon Musk have rocked the cryptocurrency market with significant price fluctuations. Today, he is creating a native cryptocurrency on the X platform under the temporary name X Money. If and when that happens, the project could turn X (e.g., Twitter) into a complete financial system, turning Musk into an overnight competitor to traditional banking systems as well as traditional cryptocurrency payment systems. Others believe this could be Musk's effort to create a decentralized alternative to PayPal and traditional financial technology platforms, leveraging the huge user base of X to drive its adoption. Musk factor When Elon Musk targets Dogecoin, the market takes notice. His influence becomes undeniable when a single tweet causes a sharp price increase. In December 2020, a seemingly ordinary tweet, 'One word: Doge', triggered a 20% price surge within a few hours. By May 2021, after Musk appeared on Saturday Night Live, Dogecoin skyrocketed to $0.73, marking an astronomical growth of over 10,000% compared to the previous year. However, this excitement did not last long, as Musk joked that Dogecoin was a 'hustle' on national television, causing the price to collapse immediately. This cycle repeats as Musk continues to reveal integration with Tesla, Twitter ( is currently X) and even SpaceX. Each hint of applying Dogecoin creates waves in the market, illustrating an unprecedented case of price manipulation driven by social media. Market Impact Analysis: Correlation of Price Volatility Looking closely at the price fluctuations of Dogecoin reveals an undeniable link between Musk's interest and its price. From December 2020 to May 2021, Dogecoin surged from $0.003 to an all-time high, over 24,000%. The following year, as Musk's attention shifted elsewhere, it dropped by 90%, demonstrating its speculative volatility. When Musk proposed accepting Dogecoin as payment on Twitter in early 2023, the price of this coin surged by 30% in just one day, demonstrating that his influence has not diminished. On the other hand, the broader cryptocurrency market tends to reflect the highs and lows of Dogecoin, highlighting Musk's greater influence. When Tesla announced that they would no longer accept Bitcoin due to environmental concerns, the entire market plummeted, with Dogecoin losing 40% of its value in just a few days.
Dogecoin is not the only token related to Musk that has experienced extreme price fluctuations. The rise of coins inspired by Musk, such as ElonCoin, MuskSwap, and even imitation tokens like Dogelon Mars, follow a similar trajectory. In 2021, Dogelon Mars ($ELON) surged 4,000% in less than a month, driven by speculation that Musk will support it. Similarly, Musk's spontaneous social media posts have caused ElonCoin to surge over 600% in just one week before quickly dropping back. Just Musk's involvement in cryptocurrency - intentional or not - also immediately distorts the market. Legal meaning and regulations Musk's market-shaping tweets have not escaped regulatory scrutiny. In 2022, a class-action lawsuit alleged that he deliberately manipulated the market, artificially inflating the price of Dogecoin before selling to make a profit. While Musk dismissed the lawsuit as frivolous, regulators, especially the SEC, have increased monitoring of market activities driven by influential individuals. 'If successful, the lawsuit could set a precedent for tighter oversight in the cryptocurrency market, potentially curbing speculative cycles,' Kar Yong Ang explained. 'Such intervention could reshape the industry, making it less susceptible to manipulation but also reducing the high-risk, high-reward nature that attracts many traders,' the expert concluded. Future prospects: Market prediction 'Musk effect' wider than continues to fuel the frenzy of speculation in the cryptocurrency market. This effect is not limited to Musk's own initiatives: coins associated with his public image, family, and even unrelated memes tend to increase exponentially in value. Recently, themed memecoins about Trump and Melania have created a new wave of speculative trading. Meanwhile, Musk himself continues to indirectly influence the meme coin space. His recent online antics, such as changing his name to 'Harry Bōlz' on X, coincided with a sudden $28 million surge in trading volume in niche tokens, demonstrating how market-moving actors can stem from seemingly mundane events. Consider investment and risk assessment With Musk's ability to participate in the cryptocurrency market directly through X Money, the context could change significantly. Unlike Dogecoin, which is still mainly speculative and community-driven, a financial token backed by Musk could introduce tangible use cases, especially in X's expanding payment ecosystem. The main risk factors for investors include: Regulatory uncertainty: Regulators are closely monitoring Musk's financial projects, and any potential legal challenges could impact the development of X Money. Market volatility: If history is any indication, Musk's cryptocurrency projects tend to cause significant market fluctuations, benefiting early adopters but posing risks for those entering the peak excitement cycle. Adoption challenges: For X Money to succeed, it must offer compelling advantages over existing payment solutions such as PayPal and USDC-supported stablecoins. Adoption will depend on effective integration with financial services on the X platform. Despite these risks, Musk's potential to disrupt the digital payment space cannot be ignored. If X Money launches successfully, it could become a dominant force in financial technology, further strengthening Musk's influence on the global market.