Elon Musk again influenced the price of Dogecoin (DOGE), which soared after it was announced that the billionaire had become a shareholder of Twitter.
For a long time, Tesla and SpaceX CEO Elon Musk has been linked to DOGE prices. Despite not being directly connected with the memecoin project, this is the case.
This week, the price of DOGE soared by more than 10%. The currency meme reached at $0.1570, the most since February 13.
This time, the ‘Musk Effect’ is due to Elon Musk’s purchase of around 10% of Twitter’s stock. The entrepreneur currently holds more than 73 million shares worth $2.9 billion in the company. He holds more shares than Jack Dorsey, the social network’s co-founder and former CEO.
How does Elon Musk buying Twitter shares affect the memecoin?
As in other cases, DOGE’s valuation following the announcement of Elon Musk’s investment on Twitter is something much more irrational and speculative. So far, neither the entrepreneur nor the social network have spoken out or provided information about the billionaire’s future involvement in the company’s decisions.
In addition to commenting on cryptocurrencies, he became a standout by criticizing the use of NFTs as profile pictures. He polled his followers, asking if the social network is an environment of free speech – 70% of voters said no.
DOGE supporters speculate that the memecoin will be integrated into Twitter’s payment and tip system. Twitter currently accepts Bitcoin (BTC) and Ethereum (ETH) (ETH).
The Elon Musk Effect: The impact on the asset’s price
When Musk started tweeting about DOGE in January 2021, The Musk Effect was born.
In April, the billionaire’s fresh tweets sparked a 500 percent increase in DOGE in just three days. He vowed to talk about cryptocurrencies on Saturday Night Live the following month, causing the cryptocurrency to reach an all-time high of $0.73 before the episode aired.
Despite the euphoria of the community, Musk’s mention of the memecoin on the show only managed to send the price of the meme coin down. In July, Musk changed his profile picture on Twitter, referencing DOGE – which positively influenced the price of the asset again.
Back in December, he hinted that Tesla could accept the cryptocurrency, causing its price to rise again. Although Musk still manages to influence the prices of DOGE and other cryptocurrencies, the entrepreneur has lost some of his “power” in the market, as price triggers are getting weaker and weaker.
Even with the continued support of the entrepreneur, the cryptocurrency is currently 80% below its historical price maximum. Musk still faces charges of using his influence to manipulate the market to his advantage. His company, Tesla, has already made big profits in BTC.
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