Elon Musk, the world’s richest person and CEO of Tesla, has once again moved the crypto market with a single tweet. On February 4, 2021, Musk posted: “Dogecoin is the people’s crypto.” Within minutes, the price of Dogecoin (DOGE) surged from $0.0411 to a high of $0.0588 — a 43% spike — before settling at $0.0541 at the time of writing. Compared to the previous day’s low, the token was still up more than 60%.
The Musk Effect on Dogecoin
This is not the first time the billionaire has influenced Dogecoin prices. According to data from Messari, DOGE soared to an all-time high of $0.0791 after Musk’s earlier tweets. Over the past week, the token has skyrocketed more than 400%, pushing its market capitalization to approximately $6.74 billion. Musk’s magic touch also worked on Bitcoin: when he changed his Twitter bio to simply “#Bitcoin,” the leading cryptocurrency jumped over 20% within hours.
Criticism and Calls for Regulation
Not everyone is celebrating Musk’s market-moving tweets. Some analysts accuse him of deliberately pumping specific tokens for personal gain or to benefit his inner circle. Twitter users have called for regulatory scrutiny, arguing that Musk’s influence harms “the little guy” who may blindly follow his posts. This backlash may have prompted Musk to announce a brief hiatus from Twitter, though he quickly returned and has since posted at least five more tweets about Dogecoin.
Reactions among Musk’s followers are mixed. Many thank him for the profits, while others ask him to “do the same” for other cryptocurrencies. However, one user, Poison, joked: “I lost money because I listened to you man.”
The episode underscores the outsized impact of celebrity endorsements on volatile crypto assets. As regulators increasingly eye social-media-driven market manipulation, investors are reminded that not all tweets are financial advice — and the risks of following influencers can be as dramatic as the gains.