Elon Musks Tweet leads to Dogecoin by 4% - speculation about his influence on the market
Elon Musks Tweet leads to Dogecoin by 4% - speculation about his influence on the market
Dogecoin (Doge) experienced an increase of about 4 %after a tweet by Elon Musk, the CEO of Tesla and Twitter. This triggered speculation about Musk's interest and its possible influence on Doge, since the markets react quickly to his comments.
According to reports from Fortune and Finance Yahoo, the price of Dogecoin (Doge) rose by about 4 %within minutes after Elon Musk, the CEO of Tesla and Twitter, mentioned the popular cryptocurrency in a tweet. The price rose from $ 0.069 to $ 0.072 to Musks Post late Wednesday morning. However, the token quickly took back part of its profits and was traded a little below $ 0.070 at the time of writing. Nevertheless, there is an increase of 2 % in the last 24 hours, as reported by Coindesk.
The second largest cryptocurrency with dog topic, Shiba Inu Coin (Shib), experienced a price increase, but has made most of the profits again.
Elon Musk's influence on Dogecoin and the cryptoma markets is known in the crypto community. His public comments on various crypto projects often lead to fast market reactions. In the past, his support of tokens, which have to do with artificial intelligence, led to a sudden increase in their value after announcing a project focused on AI to compete with the popular chatbot chat.
Because of his obvious interest in Doge, there is speculation that he holds a significant share in the token. During his appearance at "Saturday Night Live" in May 2021, Musk mentioned the Dogecoin, which led to the all -time high of the token of 73 cents. Since then, however, Doge has lost around 90 % of its market value.
It is interesting to notice that Musk's recent statements about Doge shortly before Tesla's result report for the second quarter. The company announced the sale of some Bitcoin stocks a year ago in the report on the results of the second quarter. This gives Musks remarks an additional meaning.
The effects of Elon Musk's tweets on the price and the market capitalization of Dogecoin should not be underestimated. His youngest meme tweet with the popular cartoon character Scooby-Doo led to an increase in the market capitalization of the memoin by 3 %, which corresponds to about $ 320 million. In just 15 minutes the price for a dogecoin rose from about 6.9 cents to 7.1 cents, although it has fallen closer to 7 cents since then.
Dogecoin dealers observe Musk's Twitter comments and public statements exactly, since its influence on the market has caused a group of investors to submit a class action against him. In the lawsuit it is claimed that Musk's tweets and comments about Doge about market manipulation, and compensation for $ 258 billion is required. Musk's lawyer team rejected the lawsuit and described it as "an imaginative work of fiction" due to the "harmless and often stupid tweets" of the CEO.
In the further course of Julis, many will observe exactly whether Dogecoin can achieve the speculated price target of $ 0.10. In view of the continuing interest and influence of Elon Musk, the future of Doge remains uncertain, but undoubtedly captivating for investors and crypto enthusiasts.