Last July, DOGE’s value increased by nearly 14% following a tweet that took its toll on the social network. The same event just happened again on December 20 with this time an increase of 25%. In each of the two cases, the author of the tweet that triggered the price movement was the same: Elon Musk. The billionaire at the helm of Tesla is indeed a staunch supporter of dog meme-inspired altcoin. His outings on the DOGE having such effects, observers find it difficult to pinpoint the billionaire’s real intentions.
An asset very sensitive to public attention
Long before Elon musk, the Dogecoin had already been shipped in a mad race for growth fueled by the TikToK phenomenon. A far from harmless situation that makes the analyst say Hasu than cryptocurrency prices were fueled by attention. A reality all the more true in the case of the Dogecoin that he had struggling to gain credibility in the crypto space. Although this was not the primary objective of the project, it was able to benefit from the exposure offered by Mr. Musk to see his market capitalization increase rapidly. After briefly discussing the importance of bitcoin on social media, the billionaire tweeted, ” One word: Doge “.
As in last July, a frenzy gradually developed on the social network resulting in a 25% bond of the asset value. A past master in the art of manipulation, Mr. Musk had even changed some details of his biography revealing the title of former CEO of Dogecoin. If the CEO of You’re here seems to be enjoying the situation, the fact remains that he has increased trading activity around altcoin. Now analysts are interested in the further fallout of this move on the cryptocurrency market.
Rise in DOGE precedes altseason
Although the actions of Mr. Musk no longer surprise analysts, they nevertheless try to learn from the consequences. So some of them point out that ’a rise in Dogecoin was followed by an altseason in the past. With bitcoin currently in sparkling form, it would indeed not be surprising to see such a scenario occur. Historically, altcoins have generally seen their optimal shape in the wake of bitcoin’s bull cycles. In an effort to cope with declining bitcoin volatility, traders always end up relying on altcoins, a scenario that many experts are considering soon.
The only certainty to be drawn from this situation is that the CEO of Tesla is now an influencer in the crypto space. It remains to be seen whether his foray into the bitcoin market will have the same effect.