If we are to be really honest with ourselves, the cause of the recent dip in the market is not because of Elon Musk tweet or because of China ban on crypto (though it added to it). It is because the market has been in an overbought position long enough. Taking Bitcoin for example, the price increased so fast (leaving a price imbalance/void) without any serious retracement or correction. So the market is just correcting itself.
Yes, it was an overbought position. But Elon musk makes things worse by promoting doge with it. Many new investors bought doge around 0.6 or above. They are almost 50% lose right now. Now those people will exit from the crypto market and will say crypto is a scam. His market manipulation is something that affects the market. He is not good for crypto.
If we are to be really honest with ourselves, the cause of the recent dip in the market is not because of Elon Musk tweet or because of China ban on crypto (though it added to it). It is because the market has been in an overbought position long enough. Taking Bitcoin for example, the price increased so fast (leaving a price imbalance/void) without any serious retracement or correction. So the market is just correcting itself.
Bear in mind always that what moves cryptocurrency is mainly news. People buy and sell on rumours. So, whenever there is news release it affects prices of tokens. Elon's tweet and the news of ban from China greatly affected the price of Bitcoin at the time. We can not say it did not. That will not be correct. Even if price is moving fine now at the current happening and Elon goes again to bash Bitcoin you can bet that the price will drop drastically in less than 24hrs. And if his tweet praises Bitcoin you can also bet that price will push up within 24hrs too. That is how cryptocurrency works. News makes it react alot.
There is a saying that buys the rumours and sell the news. News affects the crypto market heavily but in long term, only fundamentally strong projects survive.