Dogecoin surges, Bitcoin dips: How Elon Musk’s tweets pep up cryptocurrency market
Bitcoin hit a two-month low on Friday and is staring at its worst week since February 2021 while Dogecoin price has gone up once again. Both these cryptocurrencies logged sudden price movements after Elon Musk tweets.
New Delhi: Billionaire Elon Musk is one man who can influence rather create strong ripples in digital currency market. The sudden rise & fall in value of cryptocurrencies like Bitcoin and Dogecoin is a testimony of his towering influence.
Bitcoin hit a two-month low on Friday and is staring at its worst week since February 2021 while Dogecoin price has gone up once again. Both these cryptocurrencies logged sudden price movements after Elon Musk tweets.
Tesla will not accept payments in Bitcoin because of environmental concerns, Elon Musk tweeted on Wednesday. Tesla founder announced that it would no longer be accepting vehicle payments in Bitcoin.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
He cited ‘rapidly increasing use of fossil fuels for Bitcoin mining and transactions’ as supposed reason.
To be clear, I strongly believe in crypto, but it can’t drive a massive increase in fossil fuel use, especially coal
— Elon Musk (@elonmusk) May 13, 2021
A day later, he tweeted that he was working with developers of Dogecoin to improve system transaction efficiency.
Following the two distinct statements from him, the world’s largest cryptocurrency hit a two-month low, while Dogecoin rallied by about 20 percent.
“Working with Doge devs to improve system transaction efficiency. Potentially promising,” Musk said on Twitter, vaulting dogecoin from about $0.43 to $0.52 on the Binance exchange.
Working with Doge devs to improve system transaction efficiency. Potentially promising.
— Elon Musk (@elonmusk) May 13, 2021
Elon Musk’s announcement that SpaceX would accept a company’s payment in Dogecoin, also added a great deal in the movement in digital currency.
Musk’s tweets pushed Bitcoin to all time high in March
It’s not the first time that Elon Musk’s tweets have sent markets into tailspin or strong upward spiral.
In February, a series of tweets by Musk, in which he hailed Dogecoin, the value of cryptocurrency jumped to wild levels.
In March, the value of Bitcoin rose to an all-time high of $60,000 (roughly Rs. 43 lakhs) after he announced that Tesla would accept the cryptocurrency as a mode of payment.