The relationship between musk’s tweet and dogecoin sudden price increase
Elon Musk, the CEO of Tesla and SpaceX, posted a sarcastic tweet about the meme cryptocurrency Dogecoin (DOGE). It is not the first time musk has trolled the crypto and bitcoin (BTC) communities with humorous remarks.
He tweeted “it’s inevitable”, with an image showing the “Dogecoin” standard dwarfing the global financial system.
After musk’s viral tweet, the price of Dogecoin rose from $0.003052 to $0.003433, by around 14%. Whether Dogecoin rose as a result of musk’s tweet can’t be certain, want we know is that, unlike top cryptocurrencies, DOGE has relatively low liquidity, which leaves it vulnerable to short-term pump and dumps.
Musks’ antics come just days after the extensive Twitter fiasco that laid claim to the accounts of hundreds of celebrities. Taking the opportunity of a lifetime, hackers hijacked the likes of Bill Gates, Warren Buffet—and of course, Musk himself—to promote a Bitcoin scam.
Shortly after the gag, Dogecoin’s price went virtually vertical, adding around 14% within a matter of minutes, according to coin metrics site CoinMarketCap. Its market cap increased by $40 million following the tweets. “This just goes to show you how volatile the markets are, and how easily they can be manipulated,” tweeted one crypto commentator, the pseudonymous “CryptoWhale”
Musk the self-professed “ex-CEO of Dogecoin” formed an affinity with the Shibu Inu-centric cryptocurrency in May, calling it “the best coin.” He’s been particularly complimentary about Bitcoin as well, noting that it could potentially replace cash. However, he caveated that Bitcoin likely won’t become a standard—now we know why.
Many pumps. Such wow
This is Dogecoin’s second pump in as many weeks.
Last week, Dogecoin skyrocketed by 96% in a single day. The pump was due to a TikTok challenge that prompted users to invest $25 into the meme-coin, specifically to pump it to $1.
“Let’s all get rich! Dogecoin declines practically worthless. There are 800 million TikTok users. Invest just $25. Once it hits one dollar, you’ll have ten grand. Tell everyone you know.” explained the viral TikTok video.
Youtuber Jake Paul was recently caught hopping on the Dogecoin bandwagon at the peak of the pump. “This is gonna go crazy,” the 23-year-old multi-millionaire said, messaging from his 20 million-strong Instagram account.
This wouldn’t be the first time Elon musk has unwittingly joked about cryptocurrencies, and this undoubtedly won’t be the last also.