FILE - Elon Musk attends The Metropolitan Museum of Art's Costume Institute benefit gala celebrating the opening of the "In America: An Anthology of Fashion" exhibition on Monday, May 2, 2022, in New York. Elon Musk’s more unfettered version of Twitter could collide with new rules in Europe. Officials warn the social media company will have to comply with some of the world’s toughest laws targeting toxic content. (Photo by Evan Agostini/Invision/AP, file)
Contents
This week, after another fall, almost all cryptocurrencies showed growth. Only the lazy ones did not profit. The Floki Inu (FLOKI) meme token was especially strong (again). What’s going on with the crypto market, and how is Elon Musk affecting FLOKI? We discussed this with crypto experts and degens. Here’s what they think about it.
I have no comment on tokens that were created just to pump off Elon Musk’s tweets. The nuance between Doge and Elon is that he supports it by having fun, without necessarily directly pumping the price. On the other hand, tokens like Floki Inu were created after Elon named his Shiba Inu in the hopes it will pump every time he shows/mentions his dog.
First of all, there is no real “crypto” market. The 99% of the (non-USD pegged) “crypto” tokens are effectively leveraging Bitcoin’s market price; as they are heavily collateralized with bitcoin on exchanges. So, when the BTC/USD price goes up, many of the so-called altcoins will go up with it. This helps create the illusion of a “broader crypto market”, when in reality, nothing will ever sustain any long term growth against Bitcoin. Many exchanges make money when people are buying and selling different tokens; rather than just saving in Bitcoin. This is why they collateralize everything with Bitcoin. The likely reason Bitcoin’s dollar price went up today is due to the CPI print. Bitcoin is currently being (inaccurately) traded by Wall Street as a “risk on” asset. So, the lower CPI print led to buying of risk assets big big traders, since Wall Street believes the lower CPI will lead to the Fed slowing their interest rate hikes.
The brand new newsletter with insights, market analysis and daily opportunities.
Let’s grow together!
I pay no attention to Elon Musk playing games by tweeting about altcoins. The people who trade based on stuff like this are going to end up with less Bitcoin in the end. Things like “Floki coin” have such an absurd supply and such low liquidity/trading volume that it takes very little activity to move the price up and down. But, the percentage “gains” shown are not accurate, as the USD price is not liquid. If you sold any significant amount, you would drop the price before you can get those gains. It’s not real market price. It’s a “last trade price”
Certain key levels have been crossed; [it’s] been a long time since we went back up, which can reassure investors. Just like when the market is down and we can see panic sells, a rising market attracts [both] old and new investors. Beware, however, of the 25k level of Bitcoin that had served as resistance in August.
Since Elon Musk [started pumping] DOGE, many investors are looking for the little details on each of his tweets to make a good move. If you see him eating a banana, bet on banana coin; if you see him going to the toilet, bet on poocoin. It’s kind of fun to see some token pump based on a tweet, but I wouldn’t advise anyone to do that. Do your own research; bet on solid currencies or projects you believe in.
Floki Pumped +70% thanks to Elon, but also thanks to the KuCoin listing!
Two days is too short term of a time frame to say anything meaningful about the crypto market.
People are dumb and like to trade memes, but I would expect Dogecoin to pump since Elon likes Dogecoin and not Floki.
You have not selected any currency to display You have not selected any currency to displayMetaplanet, a publicly traded investment company in Japan, has incorporated Bitcoin as a reserve asset,…
Two Bitcoin wallets, dormant for over a decade, have suddenly transferred nearly all of their…
El Salvador, the first country to legalize Bitcoin as official tender in 2021, has unveiled…
BlockFi, the cryptocurrency lending firm, has announced it is shutting down its web platform as…
Jack Dorsey, co-founder of Twitter, has projected that Bitcoin's value will escalate to at least…
Tether, a leading stablecoin issuer, has openly criticized Deutsche Bank following a report by the…