Cryptocurrency Dogecoins price jumps by 50% after Elon Musks tweet

Cryptocurrency Dogecoins price jumps by 50% after Elon Musks tweet

Dogecoin, a renowned ‘meme’ cryptocurrency, has reportedly seen its price skyrocket after Tesla and SpaceX CEO, Elon Musk, tweeted in support of it, highlighting and showcasing his power as a powerful market influencer.

On 4th February 2021, the price of Dogecoin increased by 50 per cent soon after the EV company’s CEO and the globe’s richest person, Musk, tweeted that the cryptocurrency is ‘the people’s crypto’.

The cryptocurrency, which uses a meme of Shiba Inu dog as its logo, was launched in 2013 as a simple joke, after the invention of the most valuable crypto, bitcoin, triggered a wave of copyist cryptocurrencies. But the joke grabbed attention and on Thursday, the coins had a market value of around $6.3 billion (£4.6bn), as per Coinmarketcap.com, a cryptocurrency data provider.

On Thursday morning, the single coin value jumped to $0.05204, nearly up by almost 3 cents in just 24 hours. In fact, the trading volume tripled during the day. Musk had in fact, had affirmed on Tuesday that he would be taking a break from the microblogging social networking service, before returning with comments that boosted dogecoin’s value.

Elon Musk’s tweets as well as comments in recent weeks have largely moved financial markets. At the height of the stock trading mania surrounding a leading U.S. videogame retailer, GameStop, Musk tweeted “Gamestonk”, a reference to memes related to stock market.

Bitcoin price also jumped in the previous week after Elon Musk stated that he was a firm supporter of the cryptocurrency during an interview carried out on Clubhouse, a novel social media app mainly focused towards audio posts.

The price of Bitcoin also jumped more than $38,000 last week soon after Elon Musk changed his biography in Twitter to #bitcoin. On Thursday, bitcoin rose to record a high of $38,741.58.

Musk’s Twitter posts have caused him problems in the past. Musk, in 2019, reached a settlement with the United States officials after he misleadingly tweeted that he had secured funding to take Tesla private at nearly $420 per share.

Source credit: https://www.theguardian.com/business/2021/feb/04/price-of-dogecoin-rises-by-50-following-elon-musk-tweet