- When Elon tweets, DOGE goes up.
- Gene Simmons tweeted about DOGE too. A small dip in price followed.
- This week's volatile DOGE price emphasizes how susceptible crypto is to social media.
The internet decided swiftly. At the time of writing, holds 70.5% of the votes. And just eight minutes after the tweet, Dogecoin reached a 24-hour high of $0.050681: a 12.16% increase.
On Tuesday, Musk announced he would be “Off Twitter for a while.” But on Thursday, Musk returned, tweeting ‘ur welcome’ with a picture of himself as Rafiki from the Lion King, holding up the Shiba Inu meme—the mascot of Dogecoin—in place of Simba on the clifftop above the promised land. It was a return that proved profitable for DOGE holders, as the coin rose over 40% in the following half an hour from $0.039 to a price of $0.057.
Gene Simmons tweets back to say he bought more DOGE
The next day, KISS bassist and Rock School tutor Gene Simmons took Musk’s tweet as an opportunity to disclose how he purchased more Dogecoin to supplement the DOGE and already in his portfolio. Simmons tweeted yesterday that he just bought more than $100,000 worth of the coin. Fifteen minutes later, the price began to go down, dropping over 4% from a price of $0.047 to $0.045.
— Gene Simmons (@genesimmons) February 5, 2021
It doesn’t look like the DOGE is as fond of Gene as it is of Elon.
A volatile market?
The surges and dips in price following tweets by celebrities are a sobering reminder of the volatile and whimsical nature of the crypto markets, which can and do get inordinate influence from figures like Elon Musk. A study released earlier this year by the Research Lab concluded that the correlation between and DOGE price surges was directly caused by Elon Musk’s tweets.
Elon’s been very vocal about crypto lately. The one-time Bitcoin skeptic came out in March 2020 as a supporter of Dogecoin. Then, in a sudden turn last week, he updated his Twitter bio to say one word: Bitcoin. He since deleted that bio, but the sudden upsurge of interest in the coin ended up straining crypto exchanges like Binance.
Musk’s Twitter has brought Bitcoin and noticeable increases before, intensifying the debate about just how susceptible cryptocurrencies are to manipulation, in this case from celebrity co-signs.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.