Wednesday, June 25, 2025
No Result
View All Result
CONTACT
First Crypto News
  • News
  • Bitcoin
  • Ethereum
  • Industry
  • Market Updates
  • Price
  • Coins
  • Press Release
  • News
  • Bitcoin
  • Ethereum
  • Industry
  • Market Updates
  • Price
  • Coins
  • Press Release
No Result
View All Result
First Crypto News
No Result
View All Result

Musk’s Doge, Bitcoin Tweets May Spur Double-Digit Returns

by firstcryptonews
February 6, 2021
in News
Musk’s Doge, Bitcoin Tweets May Spur Double-Digit Returns

Billionaire and Tesla’s head Elon Musk’s Twitter activity is not only stirring controversy, but it also triggers abnormal trading volumes and double-digit returns, according to a recent paper by the Blockchain Research Lab (BRL).

Musk, owner of a Twitter account with 45.5m followers, continues to move markets through his never-ending stream of opinions on the social media, pushing dogecoin (DOGE) upwards after calling it the “people’s crypto”, in his spare time between launching rockets into space and becoming the richest person on the planet.

However, Lennart Ante, a BRL researcher who hails from the University of Hamburg, studied six recent crypto-related Twitter events by Tesla’s CEO (two about bitcoin (BTC) and four about DOGE), posted in 2020 and 2021, attempting to measure the impact Musk’s social media activity exerts on cryptocurrency trade.

Using a model that refers to Musk’s individual Twitter activity and shows the resulting cumulative abnormal return (CAR) and cumulative abnormal trading volume (ATV) over different time frames, Ante writes,

“we discover significantly abnormal returns of up to 18.99% for Bitcoin and 17.31% for Dogecoin across different time frames.”

While four of the studied Twitter activities are likely only reactions to previous market events and relate to little or no significant price reactions, sad Ante, two “do not seem to be reactions but independent actions which result in huge increases in trading volumes and large and significant positive abnormal returns” – these are adding the bitcoin symbol to the Twitter bio, and tweeting “One word: Doge.”

“On January 29, 2021, Elon Musk, at that time the richest person in the world … unexpectedly changed the bio of his Twitter account to bitcoin. The price of Bitcoin rose from about [USD] 32,000 to over [USD] 38,000 in a matter of hours, increasing its market capitalization by [USD] 111 billion,” the paper says.

Musk’s Twitter bio change resulted in a significant CAR of 6.31% over 30 minutes, and 13.19% over one hour. The return peaked at 18.99% over a period of 7 hours.

In comparison, his tweet “One word: Doge” resulted in a CAR of 8.17% in just five minutes. The return reached its peak of 17.31% over one hour, according to Ante.

Furthermore, five of the studied events generated significantly positive ATVs in the short-term, and one event had a significantly negative ATV in the first ten minutes following Musk’s tweet. All six events resulted in positive ATVs after 31 minutes passed since each tweet.

The two mentioned events “illustrate the significant impact Elon Musk’s Twitter activity can have on cryptocurrency markets. While the Twitter bio change might have been meant to be a serious sign of support for Bitcoin, the tweet about Dogecoin was a joke—as Musk later admitted himself,” the paper says, and adds:

“Considering that a joke made by the richest person in the world has caused such a significant market reaction illustrates the impact of influential individuals on cryptocurrency markets.”

Additionally, negative tweets could also have negative impact on financial returns. Meanwhile, if Musk were to tweet about crypto several times a day, “the market would likely interpret this as noise in the medium term”, said the report.

Ante found that “a systematic classification of influencers in terms of their short-term impact on cryptocurrencies may represent a promising research approach” – particularly relevant against the background of coordinated manipulation via pump and dump schemes.

Coin pumping via social media sites, as well as pump and dump schemes, have been a major point of discussion in the Cryptoverse recently. DOGE itself was the centre of such discussions several times, most prominently when it was pumped by TikTokers last year, and when it was mentioned by Musk several times, and by a member of the r/wallstreetbets subreddit, responsible for the GameStop pump this year.

At 12:08 UTC Friday, BTC is trading at USD 37,494; it remained unchanged in a day and went up nearly 2% in a week. DOGE is changing hands at USD 0.045, after it dropped 9.5% in a day and 15.7% in a week.

Related Posts

Imagen Network (IMAGE) Secures $160M in Bitcoin to Build Decentralized AI Infrastructure at Scale

Imagen Network (IMAGE) Secures $160M in Bitcoin to Build Decentralized AI Infrastructure at Scale

by firstcryptonews
June 25, 2025
0

The BTC reserve will fund high-performance AI modules, multichain compatibility, and decentralized storage systems. Seattle, WA – June 25, 2025...

Atua AI Rolls Out Smart Automation Sync for Multi-Agent System Collaboration

Atua AI Rolls Out Smart Automation Sync for Multi-Agent System Collaboration

by firstcryptonews
June 23, 2025
0

Coordinated AI Agents Now Enable Seamless Workflow Execution Across Decentralized Environments Singapore, SG – June 23, 2025 – Atua AI...

FurGPT (FGPT) Powers Cross-Platform Recognition Tools for Smarter Virtual Companion Sync

FurGPT (FGPT) Powers Cross-Platform Recognition Tools for Smarter Virtual Companion Sync

by firstcryptonews
June 20, 2025
0

New tools allow AI pets to seamlessly adapt and respond across Web3 wallets, apps, and environments. London, UK – June...

Atua AI Builds Modular AI Control Stack for Scalable Decentralized Development

Atua AI Builds Modular AI Control Stack for Scalable Decentralized Development

by firstcryptonews
June 20, 2025
0

New Stack Architecture Enables Custom AI Deployment and Greater Automation Control Across Web3 Singapore, SG – June 20, 2025– Atua...

Atua AI Enhances Resource Allocation Intelligence to Optimize Protocol Operations

Atua AI Enhances Resource Allocation Intelligence to Optimize Protocol Operations

by firstcryptonews
June 19, 2025
0

Smarter AI Coordination Boosts Efficiency and Scalability Across Decentralized Workflows Singapore, SG – June 19, 2025– Atua AI (TUA), the...

Colle AI Enhances Creator Profiles With Configurable Publishing Infrastructure

Colle AI Enhances Creator Profiles With Configurable Publishing Infrastructure

by firstcryptonews
June 19, 2025
0

New publishing framework introduces tailored NFT drop settings, modular layouts, and improved audience engagement tools Seattle, WA – June 19,...

Next Post
dao maker

The Sleeping Giant has awoken, bringing venture capital to the masses.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

ShibaBitcoin—Redefining Everyday Cryptocurrency Transactions

ShibaBitcoin—Redefining Everyday Cryptocurrency Transactions

6 months ago
Facebook’s Libra Is Now More Popular Than Ethereum And XRP

Facebook’s Libra Is Now More Popular Than Ethereum And XRP

6 years ago
Mysterious ‘Missing Pepe’ Images & QR Codes Appear Worldwide – Crypto Community in Frenzy

Mysterious ‘Missing Pepe’ Images & QR Codes Appear Worldwide – Crypto Community in Frenzy

5 months ago
Ripple XRP Enhances Atua AI (TUA)’s On-Chain Ecosystem for Seamless Enterprise Solutions

Ripple XRP Enhances Atua AI (TUA)’s On-Chain Ecosystem for Seamless Enterprise Solutions

7 months ago
5 ways to earn crypto rewards in 2022

5 ways to earn crypto rewards in 2022

3 years ago
Introducing BlocX The New Layer 1 Blockchain that will take over the market

Introducing BlocX The New Layer 1 Blockchain that will take over the market

1 year ago

First Crypto News

First Crypto News

First Crypto News is the Fastest Crypto News Portal. We Bring the Best and We Bring it Fast.

Bitcoin

Amid Chinese Crackdown, America’s Foundry USA Mining Pool Enters Top Ten Spot

Amid Chinese Crackdown, America’s Foundry USA Mining Pool Enters Top Ten Spot

June 21, 2021

Recent News

Imagen Network (IMAGE) Secures $160M in Bitcoin to Build Decentralized AI Infrastructure at Scale

Imagen Network (IMAGE) Secures $160M in Bitcoin to Build Decentralized AI Infrastructure at Scale

June 25, 2025

Press Release

vANY Emerges from Anyswap Rebrand Amid Industry-Wide Compliance Pressures

vANY Emerges from Anyswap Rebrand Amid Industry-Wide Compliance Pressures

June 25, 2025

© 2020 First Crypto News

No Result
View All Result
  • Home
  • World
  • Science
  • Tech

© 2020 First Crypto News