- Elon Musk’s tweet sent Dogecoin rising by 6.6 percent, and Shiba Inu by 2.5 percent.
- According to the Blockchain Research Lab study on the effect of Elon Musk’s moves on crypto, there was a price range of about 3 percent on average on each of the 47 events after a tweet by Musk.
Twitter CEO Elon Musk has been linked to several price surges of Dogecoin (Doge) after his tweets triggered speculations among investors. Just recently, Musk has come up with another tweet, causing a fair increase in the price of the meme coin in the last 24 hours. In a statement that is believed to be an apparent joke, Musk Tweeted: “High time I confessed I let the Doge out.” There was an image attached to the post with the inscription “It was me, I let the dogs out.”. There was also a follow-up tweet where he wrote “Fact check me @CommunityNotes.”
Fact check me @CommunityNotes
— Elon Musk (@elonmusk) February 22, 2023
The interesting twist about this is that Shiba Inu has also surged marginally, probably because of Musk’s mention of “dogs” in the plural. Following the tweet, Dogecoin responded with a 6.6 percent sharp increase with Shiba Inu surging by 2.5 percent.
Before Musk’s tweet, the Twitter account of Community Notes posted that:
Starting today, you’ll get a heads-up if a Community Note starts showing on a Tweet you’ve replied to, Liked, or Retweeted. This helps give people extra context that they might otherwise miss.
Some users believe that Musk’s tweet was a mere expression of some new feature introduced to Twitter. However, he sought to show his interest in the meme coin.
Elon Musk’s influence on the Dogecoin price
Blockchain Research Lab’s study on the effect of Elon Musk’s moves on cryptos discloses that he has an interesting command over investors. According to the study, there was a price range of about 3 percent on average for each of the 47 events after a tweet by Musk. The study further observed that whenever there is an immediate and large spike in price, there is another 45-minute price spike that follows.
The 24-hour move of Dogecoin has been within the ranges of $0.0832 and $0.0872. From its 24-hour price data, it can be realized that the price surge was not substantial as the asset could not test its key resistance level of $0.09 before recording its first retracement as seen in the chart.
Recently, it was reported that Twitter would likely integrate Dogecoin payments into its platform. As part of the effort, Musk reportedly instructed developers to build the payment product in a way that crypto payment could be added in the future.
In 2021, Musk told Times Magazine that Bitcoin is not fundamentally good to exist as a substitute for transactional currency. Interestingly, he stated that Dogecoin suits this purpose even though it was created as a joke. According to him, Dogecoin encourages people to spend rather than hoard as a store of value. Also, he stated that crypto has some advantages over fiat, and clarified that he does not hate fiat.
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There are advantages with crypto relative to fiat, in that fiat currency tends to get diluted by whatever government it is. It ends up being a pernicious tax on people, especially those who have cash savings with dilution of the money supply.
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