- 2022 has been bloody for both of the two largest crypto tokens, Bitcoin and Ethereum, as they lost between 60-70 percent of their market value.
- Musk can’t solely influence the price of DOGE and SHIB; both projects must work in 2023 to avoid sinking further.
2022 has been a year of the unexpected in the digital asset industry, and it’s fair to say any comparison can be a rational thing to do in this case. The crypto market’s bearish trend grabbed the headlines in the year so is Elon Musk, the ardent Dogecoin supporter who has been the most prominently featured personality in the news. Meme crypto assets like DOGE and SHIB occasionally react to Musk’s actions and activities.
However, the new Twitter owner could do little to influence the price of the assets in 2022. This year has been bloody for the two largest crypto tokens, Bitcoin and Ethereum, as they lost between 60-70 percent of their market value. The same can be said of other digital assets connected to the billionaire tech entrepreneur. Interestingly, the stock price of Musk’s electric car-making firm, Tesla, has dipped 64.42%.
Also, the prices of Dogecoin and Shiba Inu dipped 54.36 percent and 75.22 percent, respectively, in the same period. Apart from this, speculation is that Twitter may have snatched Tesla’s shine by taking most of Musk’s attention from his most important project. The reason for the rumor is that stocks from rival electric car manufacturers like Ford and General Motors outperformed that of Tesla in the same timeframe.
In a recent tweet, the co-founder of Epsilon Theory, Ben Hunt, noted that it sounds strange that only Tesla was impacted by the macroeconomic effect and not Ford or GM, with the two seeing a 1 percent and 8 percent increase while Tesla recorded a 41 percent decrease.
Is Twitter Responsible for Tesla’s Slump?
Following the billionaire’s completion of his Twitter takeover in October, Tesla’s share price witnessed a market free-fall in the same period, which makes observers note that Tesla might be struggling to share Musk’s influence with another firm. In a rather unusual remark, the CEO of Gerber Kawasaki Wealth Management, Ross Gerber, disclosed that the Tesla stock fluctuation reflects that of a company with no head.
According to Gerber, Tesla may need some assurances from Musk to put things in order when he returns from Twitter. However, Musk did not hesitate before responding to Gerber’s remarks by requesting that the latter go back and consult his Securities Analysis elementary texts.
What Next for Dogecoin, Tesla, and Shiba Inu
It is difficult to say what is the next step for the three Musk-linked entities, but things might change for the better in the coming days. Meanwhile, Musk is seeking a new CEO for Twitter after he conducted a poll where most respondents want him to step down. If Musk can take charge of only the software and server units on Twitter, he may have the time to focus on his other company.
As for Dogecoin and Shiba Inu, 2022 indicates that the billionaire alone cannot do it all, and they will have to put in the work in 2023 to avoid sinking further.
