Elon Musk Tweet Sends Dogecoin Prices Soaring

Whenever Elon Musk tweets about the cryptocurrency industry, the market has something to say about it – with usually an incline of sorts included. This time, things appear to be no different. After Musk tweeted about both Bitcoin and Dogecoin, the altcoin immediately experienced a massive spike in trading value; gaining almost 25%.

Musk initially tweeted about Bitcoin, offering (likely in jest):

“Bitcoin is my safe word”

Elon Musk and Dogecoin

After a number of memes in a Twitter thread, the Tesla CEO tweeted about Dogecoin, which the market reacted to (which it has done in the past when Musk has tweeted about the cryptocurrency which was launched as a meme).

The last time Musk tweeted about Dogecoin in July this year, the price of the altcoin hit a 14% increase. His latest tweet has sent the price of Dogecoin up by 25%.

One word: Doge

— Elon Musk (@elonmusk) December 20, 2020

In addition to tweeting about Dogecoin, Musk went a step further and made his bio on the platform “Former CEO of Dogecoin.”

His antics around the altcoin not only sent the market buzzing, but Dogecoin became a trending term on Twitter – a trend which would lead to more individuals coming across the cryptocurrency even if they aren’t following Musk.

Analysts believe that the correlation between the two is clear: As Musk shines the light on an altcoin, the attention is directed again to the market and prices soar. As a sentiment-driven market, any celeb ity attention brings in a fresh wave of interest from new investors or traders. When a cryptocurrency, like Dogecoin, has a lower market cap, the prices surge quickly.

While Bitcoin has already having been experiencing a field-day this weekend reaching $24,000 USD, altcoin season could be around the corner too. As noted, “altseason starts with Doge pumping”:

Every altseason starts with $DOGE pumping. https://t.co/EbIifafaYU

— il Capo Of Crypto (@CryptoCapo_) December 20, 2020