The affinity between Elon Musk, Doge, Bitcoin & the rest of the Crypto Market

Dogecoin is surging after billionaire Elon Musk and other celebrities appeared to back the cryptocurrency on Twitter.

The meme-inspired token rallied 37% in 24 hours to a record high of $0.084945 at 10:20 a.m. ET on Monday, according to data from CoinMarketCap. As of 12:25 a.m. ET, dogecoin was up 18% at a price of $0.08008.

Dogecoin’s stellar run has boosted its market value to over $10 billion, making it the No. 10 digital coin on CoinMarketCap’s ranking. At its intraday peak Monday, trading volume in dogecoin had reached around $16.9 billion in the previous 24 hours.

Dogecoin was created in 2013 and is based on the then-popular “doge” meme that portrays a shiba inu dog alongside multicolored text in comic sans font. The cryptocurrency was initially started as a joke but has gained a following.

Retail investors have pumped up dogecoin’s price recently, taking their cue from Musk. The Tesla CEO has tweeted about dogecoin several times over the years.

More recently, he posted a picture of a fictional “Dogue” magazine — a play on the fashion title “Vogue” — leading to an 800% surge in dogecoin’s price.

Musk subsequently threw his support behind bitcoin, saying it is “on the verge of getting broad acceptance” in finance. In an SEC filing Monday, Tesla said it has bought $1.5 billion worth of bitcoin and will accept the cryptocurrency for payment of its products.

In his earlier statement of support for bitcoin, Musk he didn’t have a “strong opinion” on other virtual currencies and that his tweets about dogecoin were meant as jokes.

“But fate loves irony,” Musk said recently on the social audio app Clubhouse. “The most entertaining outcome and the most ironic outcome would be that dogecoin becomes the currency of Earth in the future.”

Musk has made several recent tweets about dogecoin. Just two days after saying he planned to take a break from Twitter “for a while,” Musk returned, posting dogecoin memes and calling the token “the people’s crypto.”

He has been joined by the likes of Snoop Dogg and Kiss singer Gene Simmons in posting tweets backing dogecoin. Snoop Dogg, whose real name is Calvin Cordozar Broadus Jr., tweeted at Musk with a parody of one of his albums. The words on the album cover are replaced with “Snoop Doge” while the doge image covers the rapper’s face.

Bringing Bitcoin to Tesla

Tesla said on Monday (Feb 8) it had invested around US$1.5 billion in bitcoin and expected to begin accepting payment for its cars and other products with it in the near future, prompting a jump in Bitcoin (BTC).

Tesla said in a filing the decision was part of its broad investment policy as a company and was aimed at diversifying and maximising its returns on cash.

It said it had invested an aggregate US$1.5 billion in bitcoin under the changed policy and could “acquire and hold digital assets from time to time or long-term”.

Bitcoin surged to a new record above US$44,000 after Tesla made the disclosure.

The electric carmaker unveiled the investment 10 days after its chief executive Elon Musk drove up the cryptocurrency’s price by adding a “#bitcoin” tag on his Twitter profile page.

Musk removed the tag from his Twitter bio a few days later but has continued talking up bitcoin and other cryptocurrencies, in particular, dogecoin, to his 46 million Twitter followers.

In December, he had mooted the possibility of converting “large transactions” of Tesla’s balance sheet into bitcoin.

Source: Reuters

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