Elon Musk's Favourite Cryptocurrencies?

When Elon Musk tweets about crypto, markets move. Sometimes they soar 50% in hours. Other times they crash just as fast. But here's the thing: not every Musk mention means he's actually backing that coin.

The Tesla CEO's crypto influence is legendary, but separating his genuine investments from internet speculation isn't always easy. Does he really own that memecoin, or did traders just get excited over a dog photo?

As someone who runs Tesla and SpaceX, and having recently completed a 130-day stint reforming government through DOGE, Musk's words carry significant weight in crypto circles. However, savvy investors recognize the distinction between a casual tweet and a genuine endorsement.

Let's examine the five cryptocurrencies most closely tied to Musk and separate his actual investments from market speculation.

1. Dogecoin (DOGE): His Clear Winner

Musk's Position: Confirmed owner and active advocate
 Current Price: $0.1726 (July 2025)
 Market Cap: $25.9 billion

There's no mystery here - Dogecoin is Musk's crypto darling. He's called it "the people's crypto" and "my favorite cryptocurrency" so many times that even the most skeptical observers have to take notice.

Why Musk Loves DOGE

What started as a Bitcoin parody in 2013 somehow captured Musk's heart. And it makes sense when you think about it - the guy who named his company "Tesla" after a mad scientist isn't going to pick the boring option.

Musk noticed something interesting: his Tesla and SpaceX factory workers were buying DOGE while wealthy investors flocked to Bitcoin. That grassroots appeal clearly resonated with someone who loves to position himself as an anti-establishment figure.

He's also genuinely impressed by DOGE's technical setup. Low transaction fees and a steady inflation rate that he calls a "feature, not a bug." For someone obsessed with efficiency, DOGE works better for everyday transactions than Bitcoin's expensive and slower network.

Real-World Adoption

Tesla began accepting Dogecoin for merchandise in December 2021, triggering a 20% price surge in the cryptocurrency. Customers can purchase items like Cyberwhistles and belt buckles using DOGE. The Boring Company followed suit, accepting DOGE for Las Vegas loop rides.

SpaceX's DOGE-1 satellite mission, fully funded by Dogecoin, was announced in 2021 with plans to launch in 2022 as the first cryptocurrency-funded space mission. Although the mission has been repeatedly delayed and has not yet launched, it demonstrates the potential for practical utility beyond speculative trading.

When Tweets Move Markets (For Better or Worse)

Here's where things get wild. Musk's February 2021 tweet calling DOGE "the future currency of Earth" triggered a massive 50% rally. Traders were throwing money at their screens.

But then came SNL in May 2021. When Musk jokingly called DOGE a "hustle" on live television, the price tanked 30% almost instantly. That's the double-edged sword of celebrity crypto endorsements: it can do as much harm as good.

His time leading the government efficiency initiative drove a 40% DOGE price spike in early 2025, though his scheduled departure in May and later tensions with Trump over spending legislation caused market volatility.

2. Bitcoin (BTC): Strategic Investment with Reservations

Musk's Position: Confirmed personal and corporate owner
 Current Price: $109,400 (July 2025)
 Market Cap: $2.17 trillion
 Tesla Holdings: 11,509 BTC ($1.26 billion value)

Bitcoin represents Musk's largest crypto investment by value, though his relationship remains complex. Tesla invested $1.5 billion in Bitcoin in February 2021, briefly accepting it for vehicle purchases.

Environmental Concerns

Musk reversed Tesla's Bitcoin payment policy in May 2021, citing environmental concerns about mining's energy consumption. His criticism caused a 5% overnight price drop.

But here's the thing - recent data shows Bitcoin miners increasingly use renewable energy sources and actually help stabilize power grids by providing demand flexibility. This addresses many of the initial environmental concerns that drove Musk's policy reversal.

Despite environmental reservations, Tesla retains 11,509 BTC, and Musk confirmed in 2022 that he personally holds Bitcoin alongside his corporate positions.

Recent Political Developments

Musk's announcement of the "America Party" in July 2025 came after his departure from government roles and conflicts with Trump over spending legislation. The party focuses on fiscal responsibility and supports both Bitcoin and Second Amendment rights, suggesting his continued strategic interest in Bitcoin as a hedge against government overreach.

His Bitcoin support appears strategic rather than passionate, focused on store-of-value properties rather than the community-driven enthusiasm he shows for Dogecoin.

Technical Appreciation

At 2021's "The B-Word" conference, Musk praised Bitcoin's decentralized structure as "quite brilliant," suggesting appreciation for its technical innovation despite environmental concerns.

3. Baby Doge Coin (BabyDoge): One Tweet, No Follow-Up

Musk's Position: No confirmed ownership, single mention
 Current Price: $0.001196 (July 2025)
 Market Cap: $200.3 million
 Market Impact: 97.8% price surge from one tweet

Baby Doge Coin's fame stems entirely from a single July 1, 2021 Musk tweet: "Baby Doge, doo, doo, doo, doo, doo." This "Baby Shark" song parody sent BabyDoge's price soaring 97.8% in 24 hours.

Limited Engagement

The 2021 Dogecoin spin-off launched to capitalize on meme appeal, featuring lower fees and a deflationary token-burning mechanism. However, Musk has not mentioned Baby Doge since his viral tweet.

The coin's community has grown to over 2.7 million X followers by 2025, with the project actively building its ecosystem and supporting animal charity donations. However, Musk's involvement remains limited to that single 2021 tweet, making any investment decisions based on his influence highly speculative.

Reality Check

Baby Doge's connection to Musk is tenuous at best. The single tweet generated enormous hype, but his complete silence since then indicates no deeper commitment. The reference appears playful rather than promotional.

Investors drawn to Baby Doge based on Musk's influence face extreme risks, as his engagement was fleeting and unintentional.

4. Ethereum (ETH): Quiet Portfolio Component

Musk's Position: Confirmed owner with limited enthusiasm
 Current Price: $2,661 (July 2025)
 Market Cap: $320.8 billion
 Corporate Adoption: None

Musk confirmed holding Ethereum during 2021's "The B-Word" conference and a Lex Fridman podcast appearance. He called ETH "pretty cool" for powering NFTs and DeFi applications.

Technical Criticisms

Despite owning Ethereum, Musk has criticized its transaction fees and slower speeds compared to Dogecoin, suggesting that ETH is less practical for everyday use. While recent network upgrades have significantly reduced fees, his position on this hasn't changed publicly.

His companies have not adopted Ethereum for payments, unlike Dogecoin's integration into Tesla and SpaceX operations. This limited corporate adoption signals modest rather than enthusiastic support.

Market Independence

Ethereum's price is driven more by ecosystem growth than Musk's influence. His ownership signals interest, but without active promotion, ETH operates independently of his crypto narrative.

A 2019 tweet praising ETH was more tongue-in-cheek than serious, and his mentions remain rare compared to his Dogecoin advocacy.

5. Shiba Inu (SHIB): Mistaken Identity

Musk's Position: No ownership, explicitly denied
 Current Price: $0.00001211 (July 2025)
 Market Cap: $7 billion
 Connection: Accidental speculation

Shiba Inu briefly benefited from mistaken speculation when Musk posted pictures of his Shiba Inu puppy, Floki, on X in 2021. Traders misinterpreted these posts as endorsements of SHIB, causing a 10% price spike.

Clear Disavowal

Musk clarified in October 2021 that he owns no SHIB, limiting his holdings to Bitcoin, Ethereum, and Dogecoin. This direct statement should have ended speculation, but SHIB's price remains sensitive to his dog-related posts.

Independent Development

SHIB has built a substantial ecosystem since 2020, including ShibaSwap decentralized exchange, Shibarium layer-2 blockchain, and various DeFi protocols. The project has also ventured into NFTs and gaming, with initiatives like Shiba Eternity mobile game and land sales in their metaverse project. This development happened entirely without Musk's input or guidance.

Superficial Connection

Musk's puppy posts remind investors of his unintentional influence. Those chasing SHIB based on his tweets risk disappointment, as his engagement is superficial and accidental.

The Risks of Following Musk's Crypto Moves

Musk's influence in the crypto market creates significant market volatility. His tweets have sparked massive rallies—Dogecoin's 8,000% surge in 2021, Baby Doge's near-doubling in hours—but also devastating crashes.

Legal Challenges

A 2022 lawsuit alleged market manipulation via his DOGE tweets, though it was dismissed in 2024. The legal challenge highlighted concerns about the influence of celebrities on crypto markets.

Musk's Own Warnings

Musk himself cautions against over-investing, tweeting in 2021: "Don't bet the farm on crypto!" His 2024 warning, "If you see me pumping crypto, it's not me," acknowledges the risks of following his statements.

Investment Strategy

Canny investors distinguish between Musk's clear preferences and incidental mentions. His genuine support for Dogecoin is evident through consistent advocacy and corporate adoption. Bitcoin holds strategic value despite environmental concerns.

For Baby Doge, Ethereum, and Shiba Inu, his engagement ranges from fleeting to non-existent. Research fundamentals, avoid hype-driven bets, and remember that Musk's tweets often reflect personal interest rather than investment advice.

Bottom Line: Separating Signal from Noise

Musk's crypto influence endures in July 2025, and his recent launch of the America Party shows he's far from stepping back from the political arena. His genuine support for Dogecoin remains clear through consistent advocacy, corporate adoption, and technical praise. Bitcoin holds strategic value in his portfolio despite environmental concerns.

However, his connections to Baby Doge, Ethereum, and Shiba Inu are either superficial or minimal. The key lies in understanding his actual positions versus market speculation. His warnings about over-investing deserve attention, and his crypto engagement should be viewed as one factor among many rather than the primary driver of investment decisions.