How Elon Musk’s X Posts Drive Cryptocurrency Prices

The cryptocurrency market, known for its inherent volatility, frequently experiences asset valuations swayed by influential public figures. Elon Musk, a prominent entrepreneur and social media personality, consistently demonstrates a profound, albeit often indirect, impact on digital asset prices through his posts on X. A recent example is the Solana-based meme coin PNUT, which experienced a notable surge following a satirical post by Musk criticizing the justice system, highlighting the speculative nature of such markets.

• Elon Musk’s social media activity on X consistently impacts cryptocurrency valuations, often through indirect or satirical posts.
• The Solana-based meme coin PNUT surged 10% in 24 hours, with its trading volume increasing 80%, following a Musk post referencing a “Peanut” squirrel.
• Previous instances of Musk’s influence include a 900% surge for Kekius Maximus, a more than 20% rise for Dogecoin, and a $6,000 jump for Bitcoin.
• Beyond crypto, Musk is pursuing political ambitions, aiming to establish a new, centrist “American Party” in the United States.
• Political analysts indicate that forming a successful third party in the U.S. requires substantial financial resources and sustained long-term commitment.

Musk’s Cryptocurrency Influence

Musk’s post on X, which included a meme mocking the justice system’s perceived inaction on the Epstein client list while mentioning a “Peanut” squirrel, resonated unexpectedly within the crypto community. While he did not explicitly name the PNUT token, the timing of his highly viewed message—exceeding 13.7 million views—coincided with a significant increase in the token’s trading activity. Following the post, the PNUT token surged 10% in 24 hours, reaching a price of $0.2357. Its 24-hour trading volume also dramatically expanded by 80%, surpassing $214 million, with the meme coin’s market capitalization reaching $223 million. This episode underscores how tangential online content can trigger substantial market movements in thinly traded, speculative assets.

This phenomenon is not new for Musk. His past social media interactions have repeatedly demonstrated the capacity to influence cryptocurrency prices. In January, a change of his X handle and profile picture to a “Pepe the Frog” theme led to the Kekius Maximus token surging over 900%. Earlier, in 2021, a reference to “The Dogefather” propelled Dogecoin to a more than 20% rise in 24 hours, followed by an 8% increase from another AI-generated image in 2024. Similarly, a brief change of his X bio to “#bitcoin” in January 2021 saw Bitcoin’s price jump from approximately $32,000 to over $38,000, adding $111 billion to its market capitalization. The Ethereum-based meme coin Floki also experienced a 418% surge in 2023 after Musk posted an image of his dog, named Floki. These instances collectively illustrate the significant and often unpredictable influence of high-profile figures on cryptocurrency valuations.

Musk’s Political Ambitions

Beyond his market influence, Musk is concurrently pursuing political ambitions, aiming to establish a third political party in the United States, which he has dubbed the “American Party.” This initiative follows a public disagreement with President Trump regarding the ‘Big Beautiful Bill.’ Musk envisions this new party as technologically advanced, fiscally prudent, energy-friendly, and politically centrist, designed to attract voters from both established major parties. However, political analysts caution that dislodging the traditional Republican and Democratic parties requires substantial financial backing and sustained long-term commitment, particularly given the state-by-state nature of U.S. elections. Despite historical challenges for third parties, some observers, including former Republican congressman David Jolly, remain optimistic about Musk’s potential to provide the necessary resources for such an endeavor.