Hype on the crypto market

Cryptocurrency rates are affected even by insignificant events. For example, a flash mob, a joke or a celebrity statement. In this article we will analyze the most high-profile cases, which, it would seem, have no effect on the fundamental characteristics, but in the moment lead to huge growth.

Changing the mood in the market, which directly affects cryptocurrency rates, is quite simple: just a post on social networks or gossip. The “king of hype” in the crypto market, of course, is billionaire and owner of Tesla and SpaceX Elon Musk. With his famous tweets, he more than once accelerated the rate of not only Bitcoin, but also the meme coin itself - Dogecoin.

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

The Dogecoin cryptocurrency also owes its sharp fluctuations to Musk. He mentioned this altcoin several times on his Twitter. 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, the Dogecoin rate jumped from $0.05329 to $0.07878 in three days.

Dogecoin rate dynamics and Elon Musk's tweet

Flash mobs

Cryptocurrency rates and various mass actions on the network - so-called flash mobs - affect the rates. For example, Twitter users in February 2021 began to “highlight” the 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 from Wyoming Cynthia Lummis looked like:

Elon Musk also took part in the flash mob. He posted an image of an anime girl with glowing eyes and the 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 fueled additional interest in the crypto market.

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

This temporarily pushed Bitcoin up, but then there was a 20% correction. The cryptocurrency is currently trading around $46,000. 

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

The cryptocurrency market is still easy to “push” in one direction or another - and this does not require fundamental prerequisites. Often a post from a famous person or the coordinated actions of a large number of people is enough. 

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

Subscribe to ForkNews in Telegram to stay up to date with news from the world of cryptocurrencies