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Elon Musk is known to influence markets through his popular tweets. Some of the crypto assets he has influenced include Dogecoin and Bitcoin. However, there seems to be the third one in the basket after his tweet earlier today mentioned Shiba Inu. Though Shiba Inu is a dog name, there is a cryptocurrency named after it.
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Below is tweet causing excitement in the market.
This tweet immediately caught the attention of traders who interpreted it as an endorsement. In return, the price has risen by over 5% since.
Shiba Inu cryptocurrency was launched last year and has gained a lot of popularity since. Earlier this year, its price grew almost tenfold recording an over 1000% rise. It has since retraced in what seems to be a similar trend across the crypto industry.
The below chart shows the price movement after Elon Musk’s tweet.
This tweet from Elon musk marks a new beginning for the Shiba crypto. So far, nobody really knows whether it was targeted at the dog or at the coin. However, if it was targeted at the crypto, I expect it to attract a lot of interest in the coming days.
To understand the power of Elon Musk on the crypto market, you need to study how he has managed to individually influence the price of Dogecoin.
He managed to make coin without any real-life use become number two in market valuation at some point.
There is a divided opinion about one individual having the power to influence the market. Some regard it as manipulation. However, crypto trading has taught that investors will always follow where the money as opposed to the asset use.
Secondly, there is criticism as the crypto lacks any real use. Shiba Inu crypto is founded as a meme coin meant to compete with Dogecoin. This continues to raise questions about its sustainability in the long term.
No one really knows about the future of Shiba Inu. What is clear is that if Elon decides to continue talking about it, he will have a huge impact on its price.