Financial markets are prone to volatility, which potentially leads to higher earnings for investors. This is one of the reasons why they love trading a market that moves $5 trillion a day.

In the past, we have seen how important events can trigger an avalanche in the market, namely Brexit or the US elections, but they are not the only ones. Apparently, if a tweet comes from the right person, it initiates the same effect.

We speak about Elon Musk. Yesterday the tech billionaire triggered a market storm by using Twitter once again. This time the subject of his tweets weren’t Dogecoin, GameStop, or Space exploration but his own company and his latest fixation. Tesla and Bitcoin. 

He informed the world that it’s now possible to buy Tesla vehicles with Bitcoin. As usual, this caused hype in the markets.
 

What’s the power of one tweet? 

It’s strangely bigger than what you might think. The price of Bitcoin rose by almost 3% and hit $56,242 shortly after Musk's tweet, which is more than enough to buy an entry-level Tesla Model 3, priced slightly below $40,000. Tesla's most expensive vehicle, the Model X Plaid, costs around $120,000, which means now you can buy it for just a little more than two Bitcoins.



The tweet comes after the electric car company announced in February that it bought Bitcoins worth $1.5 billion. 

And while Bitcoin went up, Tesla stock fell by 4.8%.

Tesla will keep the Bitcoins they receive, and will not convert them into USD or any other currency. This increases the electric vehicle makers’ exposure to Bitcoin which might worry some shareholders. 

Although this payment option is currently only available to customers from the United States, some argue that it is a big step for both the company and the cryptocurrency, as the new decision affects the legitimacy of digital currencies.
The hype over Elon Musk's tweet didn't last long and the price of Bitcoin fell back to $51,753.84, which is in line with the previous price levels.