Will Musk’s Twitter takeover bring a boost for cryptocurrencies?
11:04, 26 April 2022
Dogecoin (DOGE), which has been dubbed the “people’s crypto” by Elon Musk, rose 28% in 24 hours after news first emerged that the entrepreneur and Tesla chief’s attempt to buy Twitter (TWTR) had been successful.
Was the meme-coin’s rally a good sign for the cryptocurrency market as a whole? Will more digital assets get a further boost following Musk’s Twitter takeover?
What is your sentiment on DOGE/USD?
Dogecoin (DOGE/USD) price chart
Cryptocurrencies boosted
A day after the news that Musk will purchase Twitter broke, the value of all cryptocurrencies combined climbed 4%.
DOGE benefited from the news the most, becoming the highest daily gainer among the top 50 virtual tokens. The dog-themed cryptocurrency also made a return into the top 10 coins by market capitalisation, kicking out avalanche (AVAX) from the pack.
Musk is widely seen as a DOGE supporter. The arch influencer has spoken many times in favour of the coin – often on the very platform he is about to purchase – calling it the ”people’s crypto” and claiming that it was one of the only three digital assets he owns (in addition to BTC and ETH).
It was no surprise that DOGE rallied earlier this month after Musk became Twitter’s major stakeholder on expectations the social media firm would be more DOGE-friendly as a result. And sure enough, just four days later, Musk floated an idea that DOGE could be used as payment for Twitter suscriptions, giving the coin another price spike.
Out of curiosity, I acquired some ascii hash strings called “Bitcoin, Ethereum & Doge”. That’s it.
— Elon Musk (@elonmusk) October 24, 2021
As I’ve said before, don’t bet the farm on crypto! True value is building products & providing services to your fellow human beings, not money in any form.
Investors getting out of DOGE
The meme coin was one of the symbols of 2021’s era of jubilee in the cryptocurrency market, having increased 3,100% in that year. But the token was hit hard during the 2022 cryptocurrency market downturn. Despite the recent Musk boost, DOGE is still down 7% year to date, and a whopping 360% down from its all-time high.
Could Musk’s Twitter involvement give a similar push to other cryptos beyond DOGE? The South-African/US entrepreneur has proved he has crypto market-moving power.
His decision that electric vehicle company Tesla (TSLA) would accept BTC sent the crypto king to its then-high last March. But that was in the middle of a bull market and an era of cryptocurrency euphoria. The current market paints a different picture and the sentiment is gripped by fear, according to the Crypto Fear and Greed Index.
Moreover, Twitter had already been a cryptocurrency-friendly company before Musk’s takeover. The social media platform’s former chief executive, Jack Dorsey, is a long-term vocal cryptocurrency advocate himself, who famously called bitcoin the “internet’s native currency”.
Dorsey also envisioned Twitter’s BTC integration during his time at the company. Twitter already enables its users to pay and accept tips in BTC through a feature the company introduced in September.
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