Elon Musk, the CEO of Tesla and SpaceX, posted a sarcastic tweet in regards to the meme cryptocurrency Dogecoin (DOGE). It’s not the primary time Musk has trolled the crypto and Bitcoin (BTC) communities with humorous remarks.
He tweeted “it’s inevitable,” with a picture displaying the “dogecoin normal” dwarfing the worldwide monetary system.
Elon Musk tweets a Dogecoin meme. Supply: Elon Musk Twitter
Responding to a sarcastic tweet asking Musk for misplaced Bitcoin, Musk wrote:
“Excuse me, I solely promote Doge!”
The worth of DOGE rose by 14% on the day. Supply: TradingView.com
After Musk’s viral tweet, the worth of Dogecoin rose from $0.003052 to $0.003433, by round 14%. Whether or not DOGE rose on account of Musk’s tweet can’t be sure. In contrast to prime cryptocurrencies, DOGE has comparatively low liquidity, which leaves it weak to short-term pump and dumps.
Musk continues to lightheartedly entertain the crypto group
In latest weeks, a viral TikTok sensation despatched the worth of Dogecoin surging. Knowledge from CoinMarketCap reveals Dogecoin rose from $0.0023 to as excessive as $0.005 inside merely three days from July 6 to 9 in consequence.
Musk’s tweet seems to be in reference to Dogecoin’s sudden enhance in recognition within the mainstream. The unexpected spark in interest about the cryptocurrency on TikTok garnered important media protection.
All through the previous 12 months, ever since Musk declared that his favourite cryptocurrency is Dogecoin, he has repeatedly tweeted about crypto.
Musk said in April 2019:
“Dogecoin may be my fav cryptocurrency. It’s fairly cool.”
“Just about, though large forex issuance by govt central banks is making Bitcoin Web cash look strong by comparability.”
“I nonetheless solely personal 0.25 Bitcoins btw.”
Is Musk tweeting about crypto useful for the trade?
Musk seemingly enjoys entertaining the crypto trade with the occasional meme tweets. He fairly clearly isn’t a severe investor in cryptocurrencies, in contrast to the likes of different common figures comparable to Paul Tudor Jones.
However, there’s a silver lining with having arguably one of the crucial high-profile and influential CEOs within the U.S. tweet about crypto recurrently.
Cryptocurrencies, as an asset class, nonetheless stay as a distinct segment market for a lot of traders. The market capitalization of Bitcoin, probably the most dominant cryptocurrency within the international market, is smaller than that of Tesla.
Dan Tepiero, the founding father of DTAP Capital, wrote:
“Not wanting like a prime in TSLA. In actual fact, simply broke out 7 days in the past. At this fee, Elon Musk turns into world’s richest individual in just a few months. The market is at all times proper. What’s it telling us in regards to the future? Web price now equal to 25% of all Bitcoin. Possibly he buys just a few?”
For an asset class in an early part of progress, cryptocurrencies may gain advantage from the publicity Musk brings to the trade.