Dogecoin Price Rising, Bitcoin Still Can’t Recover

The price of Dogecoin — the cryptocurrency born as a joke — skyrocketed after Elon Musk’s announcement. And Bitcoin has yet to return to bullish momentum.

Dogecoin’s price surged after Tesla CEO Elon Musk tweeted that the coin can be used to purchase some Tesla products.

According to CoinMarketCap data as of Jan. 14 (Vietnamese time), Dogecoin’s price surged 17.01% in the past 24 hours $0.19/Copper. In the last 24 hours, the price has reached a milestone $0.2/Copper.

The total market cap of the coin is close to 26th billion dollars. But compared to the top $0.73/co-set 8 months ago, Dogecoin price is still down more than 73%.

On Twitter, Elon Musk said that Doge can be used to buy some Tesla products. Photo: Reuters.

According to Tesla’s website, products like a whistle shaped like a Cybertruck model can be purchased using Dogecoin – a cryptocurrency born as a joke.

On Jan. 14, Dogecoin founder Billy Markus also posted an image on Twitter showing the Cybertruck horn product listed for 300 Dogecoin.

In fact, the electric scooter company planned to accept payments in Dogecoin.

Over the past year, Dogecoin — a digital token created by two software engineers in 2013 — saw a crazy price surge. The currency surged after receiving support from Elon Musk many times. Musk even considers this memecoin to be more interesting than Bitcoin and other cryptocurrencies.

Doge’s price has skyrocketed following the news that Tesla is accepting payments in the currency. Photo: CoinMarketCap.

Last year, the billionaire tweeted that he was working with Dogecoin developers “to improve the efficiency of transactions in the system.” The announcement sent the coin’s price skyrocketing within minutes.

This isn’t the first time Tesla has accepted cryptocurrency payments. At the beginning of last year, the electric car group bought up 1.5 billion dollars Bitcoin and the announcement to accept payments in this currency.

Tesla’s announcement sent the coin’s price skyrocketing, setting a record at the time. But then Musk said he was temporarily suspending bitcoin payments due to environmental concerns.

According to an analysis by TRG Datacenter, Dogecoin consumes significantly less energy. However, according to analyst Sean Williams, Musk once turned his back on Bitcoin. “As such, his support for Dogecoin is no longer credible,” Mr. Williams pointed out.

“I think a bursting of the Dogecoin bubble is absolutely foreseeable,” emphasized the expert. Experts also say that there is an endless supply of new cryptocurrencies. Blockchain projects are presented regularly. Therefore, due to the lack of competitive advantage, Dogecoin is easily taken out of the game.

Additionally, one of the main purposes of cryptocurrency is to ensure decentralization, meaning no large entity exercises significant control over Dogecoin. However, Dogecoin failed to do so.

According to BitInfoCharts, Dogecoin is at least worth owning out of a total of more than 3 million addresses $1, only 95 addresses control 66.01% of all tokens in circulation. When these “whales” sell off, the price of the currency will plummet.

Bitcoin is struggling to recover

Meanwhile, bitcoin price is still struggling to regain momentum. On Jan. 14, the world’s largest cryptocurrency traded around the threshold of $43,000/dong, down 0.64% over the last 24 hours.

Compared to the nearby peak $69,000/dong was founded on 11/10/2021, Bitcoin price fell by 37.5%.

On Jan. 13, bitcoin price recovered somewhat after news of record US inflation. “The report of record inflation in the US triggered a sell-off U.S. dollar. This helps Bitcoin to benefit,” financial expert Edward Moya of consulting firm Oanda (based in the US) told Zing.

risk U.S. dollar A devaluation could return bitcoin — the asset billed as “digital gold” — to an upward trend.

Despite recovering somewhat on Jan. 13, bitcoin price failed to bounce back. Photo: CoinMarketCap.

“The price of bitcoin has yet to gain momentum, although some proponents refer to bitcoin as ‘digital gold.’ Cryptocurrencies still seem like a risky asset,” commented financial expert Craig Erlam (based in London).

According to him, the currency remains under pressure as interest rate concerns spread through the market. At the US Federal Reserve’s (Fed) monetary policy meeting on December 14-15, 2021, some officials felt it was time to trim the portfolio. 8,800 billion dollars, including bonds and other assets.

These officials say the balance sheet reduction should be implemented soon after the Fed begins raising interest rates. The minutes of the meeting emphasized that interest rates “should be raised earlier than previously planned”.