Dogecoin Soars Overnight, and It’s Because of Elon Musk

Amidst the drama with Robinhood, GameStop, AMC, and Nokia, Musk has recently pointed Reddit’s army in the direction of cryptocurrency. Previously, we talked about Dogecoin’s entrance into a BTC-dominated crypto market and cited the support of big names, including Elon Musk, for its recent success, as Dogecoin prices rose. At the time of that segment, one Dogecoin cost around 3.4 cents. On Thursday, it closed at 4.6 cents and momentarily reached a 52-week high of 5.4 cents. 

Last Thursday, Elon Musk released a series of tweets that arguably accounted for the surge. In a 3-part segment, he promoted Dogecoin without any filter whatsoever. First, he released a picture of the famous “Lion King” scene in which Rakifi holds up Simba. However, in Elon Musk’s case, his face was edited over Rakifi, with Dogecoin’s mascot being plastered over Simba. To make things even more explicit, the tweet was captioned “ur welcome.”

As if this wasn’t enough, he followed up the spectacle with two more tweets, writing “Dogecoin is the people’s crypto” and “No highs and lows, only Doge.” For reference, Elon Musk amasses over 45 million Twitter followers alone.

Hence, today’s price rose by more than 50%, and all because Elon Musk decided to put out a tweet. It’s hilarious, kind of scary, and overall entertaining. Because most Reddit traders look to Musk for guidance and advice, his following uniformly transitioned to investing in Dogecoin and sent the price soaring upwards. 

Other celebrities, including Andre Drummond, have supported Musk on Twitter, and the tweets are trending in nearly every large news source. While the action itself is entertaining, Elon Musk’s impact on the market is just as wild. 

The market trade volume on Thursday amassed 257M, a whopping number. Elon Musk’s tweet has sent ripples throughout the crypto market, as many amateur traders are now reciting the Dogecoin short squeeze mantra of “Doge to the moon.”

Because Dogecoin is crypto, it’s much more challenging to regulate, which is likely part of the reason that it’s exploded in the status quo. If Dogecoin continues to grow, early investors will start seeing monstrous returns, especially those who bought the currency in bulk. 

Part of Dogecoin’s appeal is the affordability, as it allows small investors to own a lot of stock in something. Going towards the future, it’ll be interesting to monitor Dogecoin and see what it peaks at.