Elon Musk’s Inflation Tweet Pushes the Price of Three Cryptocurrencies

Elon Musk’s Inflation Tweet Pushes the Price of Three Cryptocurrencies

A simple tweet from Tesla and SpaceX chief executive Elon Musk fueled both price and volume of three cryptocurrencies: Bitcoin (BTC), Ethereum (ETH) and Dogecoin (DOGE) in the early hours of Monday.

It all started when Musk expressed concern about high inflation in the US, the highest in four decades. On the occasion, the billionaire questioned his followers for their opinion on the matter.

“What is your view on the expected inflation in the coming years?”

To the surprise of some, Michael Saylor, founder of the publicly traded company with the largest number of bitcoins in cash, MicroStrategy, warned that inflation will remain at its peak, arguing that Bitcoin is a form of protection against it.

“USD consumer inflation will remain close to all-time highs, and asset inflation will double the pace of consumer inflation. Weaker currencies will collapse and the capital flight from cash, debt and value stocks to scarce assets like #bitcoin will intensify.noted Michael Saylor.

I will not sell my cryptocurrencies, says Elon Musk

Elon Musk continued the conversation, giving advice to both Americans and individuals living in other countries, after all, several fiat currencies are hitting inflation records.

“As a general principle, for those seeking advice on this subject, it is generally better to own physical things, such as a house or stock in companies that you think make good products, than dollars when inflation is high.”emphasized Elon Musk.

“I still own and will not sell my Bitcoin, Ethereum or Doge”

Thanks to this simple tweet, these three cryptocurrencies quoted by the richest man in the world saw both their prices and volumes immediately rise to abnormal levels.

Bitcoin Rises After Elon Musk Tweet

Bitcoin, the first and largest cryptocurrency on the market, was the first to respond to this tweet, posting a 1.7% rise in just three minutes after Elon Musk stated that he still owns and will not sell his cryptocurrencies.

Bitcoin soars after Elon Musk tweet. Source: TradingView

In addition to the price, it is also striking that the trading volume increased enormously at 1:11 a.m., the exact time of Elon Musk’s tweet. After that, BTC had a short correction, but the price is still moving well.

Ethereum and Dogecoin are also skyrocketing

While Bitcoin is up 1.7%, Ethereum has posted an even bigger gain in the same period of several minutes, marked by a 2.4% rally. Like BTC, the price of ETH corrected shortly after, but it operates higher compared to the time of Elon Musk’s tweet.

Ethereum soars after Elon Musk’s tweet. Source: TradingView

Dogecoin, arguably Elon Musk’s most beloved cryptocurrency, was the one that showed the most profit of the three with this tweet. In just six minutes, the DOGE shot up about 10%, but it was the one with the biggest correction.

Dogecoin soars after Elon Musk’s tweet. Source: TradingView

Returning to the advice of the richest man in the world, Musk says that stocks in good companies are a good way to hedge against inflation. However, almost all of them have these fiat currencies — which lose purchasing power due to inflation — in their cashiers.

However, the billionaire’s two largest companies, Tesla and SpaceX, are an exception to this, as both have Bitcoin in their money. So one more way to protect its investors even though only Tesla is public.

As for Ethereum and Dogecoin, these are coins that none of his companies own, only he personally. The reason is linked to the lack of an offer limit for the two as Bitcoin has a maximum of 21 million units.

Source: Live Coins