THE EFFECTS OF ELON MUSK'S TWEETS ON THE INCREASE OF INTEREST IN CRYPTO ASSETS

Abstract

In this study, the messages shared by the famous businessman Elon Musk about cryptocurrencies on Twitter and the effect of these messages on the value of the mentioned cryptocurrencies and more generally on the crypto money market are discussed in the context of the threshold guard theory, and the results are evaluated within the framework of the concept of financial herd behavior. Considering the size of the study universe, sampling was used and only Twitter messages between 20 December 2020 and 15 April 2021 were discussed. As a result of the study, a chronologically positive correlation was observed between Elon Musk's Twitter posts and the valuation of the crypto currency, which is the subject of his messages. The same correlation was observed between the date Musk started his Twitter posts and the total global cryptocurrency value.