September 19, 2021

Hype on the crypto market

Hype on the crypto market

Even insignificant events affect cryptocurrency rates. For example, a flash mob, joke or saying celebrities. In this article, we will analyze the loudest cases that, it would seem, do not affect the fundamental characteristics in any way, but at the moment lead to huge growth.

Change market sentiment that directlyaffects the rates of cryptocurrencies, quite simply: just a post on social networks or gossip. The "king of the hype" on the crypto market, of course, is the billionaire and owner of Tesla and SpaceX, Elon Musk. With his famous tweets, he repeatedly accelerated the rate of not only Bitcoin, but also the most meme coin - Dogecoin.

For example, in January 2021, Elon Musk launchedflash mob on Twitter. He added the hashtag #Bitcoin to his profile description, followed by many famous users of this social network. This led to Bitcoin's growth by more than 20% - to almost $ 38,000.

Hype on the crypto market

Dogecoin also owes Musk itssharp fluctuations. He has mentioned this altcoin on his Twitter multiple times. For example, in February, Musk posted a photo of a Falcon 9 rocket in flight and added the caption "Doge." In the wake of this tweet, Dogecoin jumped from $ 0.05329 to $ 0.07878 in three days.

Dogecoin price dynamics and Elon Musk's tweet

Hype on the crypto market

Flash mobs

Affect cryptocurrency rates and various massonline promotions are the so-called flash mobs. For example, Twitter users in February 2021 began to "highlight" their eyes on their avatars and agreed not to change them until Bitcoin rises to $ 100,000. The flash mob received the hashtag # LaserRayUntil100K, and not only crypto enthusiasts, but also politicians joined it. This is what the profile of US Senator Cynthia Lammis from Wyoming looked like:

Hype on the crypto market

Elon Musk also took part in the flash mob.He posted an image of an anime girl with glowing eyes and a bitcoin logo in the background. Due to the duration of the flash mob, it is difficult to assess its impact on the dynamics of bitcoin, but, undoubtedly, this also fueled additional interest in the crypto market.

Another interesting flash mob was launched afterhow El Salvador was the first to recognize bitcoin as an official means of payment. The country's authorities promised to transfer $ 30 in bitcoins to all residents who install the official crypto wallet. After that, fans began to buy bitcoin for exactly the same amount as a sign of support for El Salvador.

Hype on the crypto market

This temporarily pushed bitcoin to growth, but after that there was a 20% correction. The cryptocurrency is currently trading at around $ 46,000.

These flash mobs are essentially an artificial inflation of the asset price - in other words, a pump. Often, pump participants understand what they are doing. Suffice it to recall the stories with GME and AMC.

The cryptocurrency market is still easy to nudge intoone side or the other - and this does not require fundamental prerequisites. Often, a post from a famous person or the coordinated actions of a large number of people are enough.

Author: Dmitry Noskov - expert of the StormGain crypto exchange (platform for trading, exchanging and storing cryptocurrencies)

Subscribe to ForkNews on Telegram to keep abreast of news from the world of cryptocurrencies