discussion Can celebrities and social media really influence cryptocurrency prices? Why? How so?

[kyoukage01 3181]

Yesterday (as of this writing), I posted a comment asking why cryptocurrency prices are so easily influenced by celebrities.

On 2/1/2021 at 11:28 AM, kyoukage01 said:

I oftentimes find it funny whenever a famous personality posted hints about Bitcoin and cryptocurrency, and the crypto market rises or falls for a short time as a direct result. I mean, are these guys (traders, investors) get easily swayed by such trifling news?

The news was about Elon Musk and his Twitter account.

https://cryptotalk.org/topic/344028-elon-musk-updated-his-twitter-bio-to-bitcoin

 

You think only Bitcoin can be affected by such tweets? Not to be outdone, the same thing can happen to altcoins too. This same Elon Musk caused DOGE prices to rise after his few tweets about the coin.

https://cryptotalk.org/topic/338350-statement-by-elon-musk-on-dogecoin-investment/

 

This topic is not just about Elon Musk, this is about every celebrity who can move crypto markets with just a simple message on social media. Nor is this about BTC and DOGE alone. The above is just an example.

 

There are a lot of news over the years where famous celebrities posting on social media cause crypto prices to rise or fall depending on the person and his comment. This forum alone is chock full of those topics, there are lots more on other forums. You'd think that crypto users would have become fed up with this pattern by now, but they don't.

 

Paypal finally including crypto in their transactions, that's really big news. Release of ETH 2.0? That's also big news. The new US Treasury secretary "threatening" to "curtail" the use of crypto? Maybe, if the US government gets serious. Those kind of news alters the way cryptocurrencies are used, and it wouldn't be a surprise if crypto prices rise or fall as a result. But celebrities giving simple and vague comments? It would be an entirely different story if they themselves bought crypto and transform themselves into whales, but did they?

 

After a quick search, I picked up on a couple of articles trying to explain how celebrities and social media influence crypto prices.

https://www.stevens.edu/news/social-media-influences-bitcoin-price

https://sproutsocial.com/insights/social-media-and-cryptocurrency/

 

I will discuss more about these articles in another post. For now, a particular line in one of those articles caught my interest. It says:

Quote

"The work, led by Feng Mai, a professor at Stevens' School of Business, shows that periods of increasingly positive social media commentary do, in fact, significantly influence the rising price of Bitcoin, but the surprise? It’s the silent majority, not the vocal minority, who move these prices.

In other words: comments and tweets from very active users did not move Bitcoin's price much at all. Rather, the silent majority — infrequent users who took the time to comment on the cryptocurrency's prospects — moved prices more, as much as ten times more, when they posted positive comments."

- https://www.stevens.edu/news/social-media-influences-bitcoin-price

Not all crypto users have a Twitter account, for one thing. I myself don't have one. So not all crypto users will be able to reply to a tweet by a famous celebrity. But that doesn't mean that they are not influenced by it. So if for example Warren Buffet pulled another publicity stunt on Twitter all the while denouncing Bitcoin as a "worthless piece of s***", Bitcoin prices might plunge. Not because of the negative replies to that tweet, but because crypto users read the news somewhere else, and now they got scared of others selling off before them, they went with the flow, and BOOM! we got ourselves a short FOMO period. All because of one person's tweet.

 

But really now, are the majority of crypto users a huge bunch of "sheep"? Can't we think of these celebrities as less of deities *cough*, and more of a regular person, like you and me? I get that celebrities are necessary to promote cryptocurrencies to more audiences, but should the potential of cryptocurrencies to change the future be good enough already?

 

Let us see what you think in the comments below.

 

Edited February 8, 2021 by kyoukage01
added an extra line

[Whited35 15285]

I have been frequently shouting for a long time on this forum that cryptocurrency market can be deviated to any direction just due to a good or bad news. Let's get started from the recent cases, few days ago, Elon Musk updated his bio i.e. one word "Bitcoin". The trend goes wild as other bigger public figures also started to update the similar Bio.  No matter they have purchased the Bitcoin or not but Bitcoin's price was appeared increasing in the cryptocurrency market, it means common sentiment of investors was directed toward the positive direction.

[Ab.kalyar 527]

Definitely it is a fact. Celebrities as the Elon Musk has changed his bio to Bitcoin. On the other hand the main role which performing is the one of the Social media. It has great impact on our lives. As it says something is on trend nowadays but in actual it is not.😔 So a little deviation takes us in any wrong direction. These things create a flactuations in Cryptocurrencies rates.

[Calvinpriva 17296]

Of course, celebrities can be the reason for cryptocurrency prices to rise because it's easy for them to influence many people by taking any action in crypto. Imagine when Kevin Hart on a live show said they accept crypto on their fund, that clip went viral and it influenced a lot of people to trust crypto which caused BTC prices to rise for some percent! So celebrities can influence crypto prices to grow easily.

[Syedbesharat 5423]

From the twit of Elon Musk and bio change I also get attentive toward doge ans BTC movement. I used social media and pay attention to news related toward crypto world. So I also invested in both and hold for better out come.The celebs are taking advantage of their fame and effecting the crypto market in both negative and positive aspects. The cap of coin increases as well crypto market but the downfall was also hard as well. The celebs are not directly investing but the ones who are investing have to act smart and make own free will decision so in future the market don't get sudden pump dump 

[Guru2050 8284]

In my own case to some extent celebrities can be seen as whales who had the privilege to altered the value of Crypto currencies impacting positively or negatively on the market. The great power  comes from the support of masses triggering the pumping of the giving coin. Not BTC but including Doge coin that has been dwindling in a set back but presently making a better face at the market.

[Raqeebzy 6456]

You also ever think how do brands sales get affected by influencers and celebrity actions on social media?. Might not be totally, but it is closely related. 

Bitcoin, or cryptocurrency in general apart from the stables are affected by speculations and to me that's flexible enough to be affected by any slightest of news, positively or negatively.

Elon Musk is arguably one of the world's leading investor every other smaller investors looks up to. To say something positive or make positive actions about bitcoin automatically to the large percentage of investors, is a green signal.

[Aleksandrw 320]

@kyoukage01 yes, thanks to access to the wider public, celebrities can easily manipulate and even speculate on the value of an asset. This is power 

[Irum shahzadi 296]

Yes definitely Crypto are influenced by the celebrities .when the any famous personality use it and share with audience definitely audience are influence and develop interest in the crypto currency platforum.

[Dedo 263]

I agree with you that famous actors, media figures, businessmen and rich people play a big role in changing the price of the currency, and I think that these campaigns are systematic and have hidden or undeclared goals, and this causes confusion in the price and the trades in general .. I try not to be influenced by this news, but it is already very influential.

[Michar1 1693]

If it is true that some celebrities sometimes cause an impact on the price of crypto, it is something that seems like a joke but it is usually true, I think it is because people who maintain a high number of views, impact for reason that most people keep them as a celebrity, for example the person you mentioned in your post, Elon Musk, is a multi millionaire, so there would be no doubt that there are millionaires who try to keep up, to be able one day be like him, or even have the fortunes that he maintains, so if he says bitcoin, all the first thing they think is that he has bought, and they all go and buy because they follow in his footsteps, I think it's something like that, most follow someone else's steps to one day be like him, or to one day have the same results.

[yonkii 3205]

All of this points to one thing. Most marketing managers think that people are sheep. What I think or if this is correct, it doesn't matter. This is how the world is turning for the last few years, that people are sheep, following blindly some individuals that are influencing decisions on consuming habits, and for at least a few years they are influencing investing decisions. The higher the number of followers someone has, it is considered from marketing, they can influence the most people.

Twitter, facebook, linkedin, and all media are just tools for marketing, filled with targeted advertisements for each individual that have profiled and makes people a target. I am using twitter rarely, and I hate using it. I hate it more than facebook as Twitter blocks and bans accounts that aren't following what Twitter wants. You can't have an opinion in Twitter, it is shaping your opinion and it looks like a rat-lab, where rats are not rewarded if they aren't having the desired test results. 

Someone famous discussing Bitcoin in a positive way, will send price higher. One of the reasons are the bots connected to the Twitter accounts that will send buy orders in exchanges. It used to be McAfee from what I am reading and now he is replaced by Musk and the Twitter Ceo.

Edited February 5, 2021 by yonkii

[David84 1191]

Crypto currency is a very sensitive market that is affected by the rumors, and the prices are fluctuating according to them . One rumor is sufficient to paralyze the whole market, for example when the bitcoin was falling , all the members rushed to sell what they had as soon as possible because there was a rumor that said Bitcoin will go back to six thousand Dollars, which proved to be a lie.

[pacific 2268]

On 2/3/2021 at 12:51 AM, Syedbesharat said:

From the tweet of Elon Musk and bio change I also get attentive toward doge and BTC movement. I used social media and pay attention to news related toward the crypto world. So I also invested in both and hold for better outcome. The celebs are taking advantage of their fame and effecting the crypto market in both negative and positive aspects. The cap of coin increases as well crypto market, but the downfall was also hard as well. The celebs are not directly investing but the ones who are investing have to act smart and make own free will decision so in future the market don't get sudden pump dump 

@Syedbesharat I have also noticed on the twitter bio of Elon Musk, that he updated with hashtags, #Bitcoin. And, BTC was up by 4% within 4-5 hours. So, it clearly shows how celebrities tweet or media influencers' bio can affect the price of the cryptocurrencies. Even, Elon Musk was made the CEO of Dogecoin on April 1, 2019 as an April fool, but people truly believe on it, and people were so excited that it will be to the moon, and even the price was highly bloomed as many people were interested after hearing that the Dogecoin CEO was Elon Musk.

[Syedbesharat 5423]

19 minutes ago, pacific said:

@Syedbesharat I have also noticed on the twitter bio of Elon Musk, that he updated with hashtags, #Bitcoin. And, BTC was up by 4% within 4-5 hours. So, it clearly shows how celebrities tweet or media influencers' bio can affect the price of the cryptocurrencies. Even, Elon Musk was made the CEO of Dogecoin on April 1, 2019 as an April fool, but people truly believe on it, and people were so excited that it will be to the moon, and even the price was highly bloomed as many people were interested after hearing that the Dogecoin CEO was Elon Musk.

Still many people believe their is a connection between Elon Musk and Doge. Their for they are trading at doge coin. For the time market of Doge is going up and coin market place it at top of the chart by giving it zero rank ,which is mockery toward doge coin. But seriously now a single twit could change the fate of crypto projects where one is high tier and other is low tier. The doge is standing at $0.04 and bets are on $1 doge price will be hit. 

[MT khan 1886]

@kyoukage01 Dear absolutely you are right, media will make the things form zero to hero and also from hero to zero by the rumors talk but the celebrities can do but some time they have successful their advertising by through of social media.

[kyoukage01 3181]

I added an extra line in my topic post above, before this one gets to become an "Elon Musk"-only topic. 😅

On 2/2/2021 at 11:11 AM, kyoukage01 said:

This topic is not just about Elon Musk, this is about every celebrity who can move crypto markets with just a simple message on social media. Nor is this about BTC and DOGE alone. The above is just an example.

 

On 2/2/2021 at 12:22 PM, Whited35 said:

I have been frequently shouting for a long time on this forum that cryptocurrency market can be deviated to any direction just due to a good or bad news. Let's get started from the recent cases, few days ago, Elon Musk updated his bio i.e. one word "Bitcoin". The trend goes wild as other bigger public figures also started to update the similar Bio.  No matter they have purchased the Bitcoin or not but Bitcoin's price was appeared increasing in the cryptocurrency market, it means common sentiment of investors was directed toward the positive direction.

This one, I find both weird and funny. Musk only changed his bio and people made a big deal out of it. So if for example he changes his Twitter bio every week to a particular coin, that coin gets to have a popularity boost for that week. Next thing you know, he might even be able to resurrect a long-forgotten coin back from the dead. LOL 😆

 

On 2/2/2021 at 5:33 PM, Calvinpriva said:

Of course, celebrities can be the reason for cryptocurrency prices to rise because it's easy for them to influence many people by taking any action in crypto. Imagine when Kevin Hart on a live show said they accept crypto on their fund, that clip went viral and it influenced a lot of people to trust crypto which caused BTC prices to rise for some percent! So celebrities can influence crypto prices to grow easily.

I didn't know about this, thanks for pointing it out.

 

So I did a quick Google search on him, and this is what I got.

https://www.newsbtc.com/news/bitcoin/kevin-hart-jokes-bitcoin-and-ethereum-are-voodoo-money/

According to the article, Kevin Hart got confused when asked whether or not the organization whose event he's hosting accepts cryptocurrencies or not. His reaction indicates that the organization haven't even thought of accepting crypto. But you're saying that BTC rose nonetheless. That's weird.

 

Has the MDA USA been accepting crypto now? I think this would have been a more positive news, because there would have been another institution who considers crypto as a legitimate currency.

 

On 2/4/2021 at 1:38 AM, Raqeebzy said:

Bitcoin, or cryptocurrency in general apart from the stables are affected by speculations and to me that's flexible enough to be affected by any slightest of news, positively or negatively.

Too affected, if you ask me. News that gravely affects cryptocurrencies due to policies imposed by governments and institutions, I get it. News about a famous celebrity saying one day he likes crypto, then saying the next day he hates them, I don't. Both can still affect the crypto market whether I personally like it or not.

 

On 2/5/2021 at 8:17 PM, yonkii said:

All of this points to one thing. Most marketing managers think that people are sheep.

Exactly. I can relate so much with this statement. I feel like 90% of my own countrymen are sooo like that.

On 2/5/2021 at 8:17 PM, yonkii said:

Someone famous discussing Bitcoin in a positive way, will send price higher. One of the reasons are the bots connected to the Twitter accounts that will send buy orders in exchanges. It used to be McAfee from what I am reading and now he is replaced by Musk and the Twitter Ceo.

Can you elaborate about this further? Maybe these bots are somehow connected to famous celebrity tweets and the resulting cryptocurrency market price movement.

 

Edited February 8, 2021 by kyoukage01

[Whited35 15285]

3 hours ago, kyoukage01 said:

This one, I find both weird and funny. Musk only changed his bio and people made a big deal out of it. So if for example he changes his Twitter bio every week to a particular coin, that coin gets to have a popularity boost for that week. Next thing you know, he might even be able to resurrect a long-forgotten coin back from the dead. LOL 😆

Lol, he inspired Dogecoin to go up. It was weird to see, so-called analysts were rolled out to provide their most probable predictions regarding its market and the famous term "Dogecoin to moon" but there are so many whales they are ready to dump Dogecoin once they spot the favorable time and I do not think such dump is far from now. Such short-term promotion from celebrities won't help crypto market to be on momentum for a long time. 

[Ridam 7455]

I don't say crypto users a seep who buys just after the tweet from a celebrity. But there are people who are lured to invest after they confirmatory post from Celebrity like Elon musk or Snop Dog. And the things that making me worry is , what if someone dumps while the fomo is ongoing and everyone were investing. For instance if we look at doge there is likely chance we may get a big correctionas and which may rekt many users rekt who are at last of the pump and dump scheme.

Praising a technology is good side but the one thats happening now sesms weid in my view.

[Dormilon 2183]

On 2/1/2021 at 11:11 PM, kyoukage01 said:

But really now, are the majority of crypto users a huge bunch of "sheep"? Can't we think of these celebrities as less of deities *cough*, and more of a regular person, like you and me? I get that celebrities are necessary to promote cryptocurrencies to more audiences, but should the potential of cryptocurrencies to change the future be good enough already?

@kyoukage01 A business person, with a lot of money and with a large number of followers in any social network, can influence many people to do certain things, even if it seems like something that should not be, the influencer has the ability to know when to do grow or decrease something that seems beneficial to him or your company.
Cryptocurrencies are highly speculative, that is why it lends itself to what is happening at the moment with the doge and the recent thing with xrp, it is a capitalist world, where money is the main thing, for that they are had, to make money, it is also lost But it is part of the supply and demand game, Elon Musk and the others who have the financial capacity and number of followers have a way made for their comments to affect thousands of people.

[Obliv0n 333]

That is the problem of decentralization, it has many benefits but since it is an organ that cannot be controlled, then it is speculation and trends that come to dominate the market, these trends are easy to change, the case of doge and xrp are an example, the bubble around doge will burst at some point and many will lose hope to play along with Elon.

[kyoukage01 3181]

On 2/8/2021 at 4:27 PM, Ridam said:

I don't say crypto users a seep who buys just after the tweet from a celebrity. But there are people who are lured to invest after they confirmatory post from Celebrity like Elon musk or Snop Dog. And the things that making me worry is , what if someone dumps while the fomo is ongoing and everyone were investing. For instance if we look at doge there is likely chance we may get a big correctionas and which may rekt many users rekt who are at last of the pump and dump scheme.

Praising a technology is good side but the one thats happening now sesms weid in my view.

What is even more worrying about your statement is that the "fans" who followed the frenzy and invested as well usually didn't even took the time to research on what the heck they've invested in. With Bitcoin, at least they can keep it safe and wait for a few years because BTC is 99.9% guaranteed to rise by that time. But with altcoins, the lower it is in the rankings, the bigger the risk of it turning into a shitcoin, and those fans better not blame their idols for their eventual losses.

 

On 2/8/2021 at 10:59 PM, Dormilon said:

@kyoukage01 A business person, with a lot of money and with a large number of followers in any social network, can influence many people to do certain things, even if it seems like something that should not be, the influencer has the ability to know when to do grow or decrease something that seems beneficial to him or your company.

Which is crazy, if you ask me. If a certain person is going to influence his followers, he'd better back it up with sound arguments in his case and/or clear data for evidence. Not a single tweet containing less than 100 characters saying his view in the very vaguest of words. Equally foolish are the followers who obey the every whims of their "master". If it turns out to be beneficial for them in the long run, then good. But if not, tough luck for them, they should blame themselves for following in the first place without ever even thinking twice, trice, even multiple times before investing.

 

[Ameralsamt 2558]

Yes, my friend of course, what you hear in the news about the influence of famous people on social media about talking about Bitcoin is really true, so trust it, and you should buy Bitcoin as soon as you hear this news. 

[Jack764 1841]

Social media greatly affects cryptocurrencies and other things, as it defames it and helps spread it in all countries, and if celebrities talk about a currency, their followers will buy this currency ...

[kion 381]

Yes ,I absolutely and definitely think that celebrities has the power to influence cryptocurrecies with there words or there investment, because we have seen it with dogecoin when Elun Musk called it the people's coin, within a day, the price sky rocket, so that is the example of how they can influence cryptocurrecies.