Elon Musk now influences the bitcoin market in many different ways. Ever since his electric vehicle company, Tesla (Tesla shares - ticker TSLA) entered the cryptocurrency market in February, Musk's influence, dubbed by many the "Elon effect", played a significant role in shaping market movements.
Prices, for example, start to rise as soon as a tweet from the billionaire on cryptocurrencies, mainly Dogecoin and Bitcoin, is recorded. They usually skyrocket for a few days before peaking or drop slightly depending on whether his tweets voice bullish or bearish sentiments.
Less sales and more waiting for the best moments
However, Musk mostly influenced early market investors, causing them to pause their cryptocurrency selling habits. Usually, as analyst Willy Woo tweeted, early investors like to sell their bitcoins in the middle of the bullish rally. But now things are starting to take a different turn.
The arrival of Elon Musk meant that big investors remained calm, just like everyone else. Perhaps, forcing them to keep an eye on the moment when an important turning point is made.
As the market has only been in the bull run for a few months, selling may not be the most effective move for these investors.
At the moment, the coins appear to be in a stalemate, a sort of dormant phase. Since March 20, we have seen that sales have started to increase. From November last year to January this year, the selling pressure intensified, reaching an all-time high. With Tesla's entry in February, there was a significant drop and the pattern has been nearly consistent since then.
The trends leave little doubt
Some time ago, Glassnode reported that the miners' sales have stopped since the Elon effect started. By offloading their usual selling model, Bitcoin miners also kept waiting, in anticipation of a much more bullish market.
According to these data, even short-term holders have stopped selling their digital coins. As explained by the analyst, who tweeted some close observations: “The SOPR of Bitcoin represents the degree of profit made on a given day. When the SOPR is high, the profits are taken ”.
The Glassnode chart shows that the SOPR is already correcting to the downside, which means that the Bitcoin market is starting to stabilize. “When the SOPR is low, there are losses. When the SOPR returns to 1.0 during bullish consolidations, it suggests that holders who are in profit have stopped spending coins, ”the popular analyst noted.
As the market stabilizes, there is more room for short and long term bullish movements.