Elon Musk triggers a 10% Dogecoin spike after his $3b stakes in Twitter

Elon Musk

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TL;DR Breakdown

  • Elon Musk’s effect fires up DOGE price.
  • Musk’s Twitter shares make him the largest Twitter shareholder.

Elon Musk’s influence on Dogecoin has been evident once again, as recent news of his purchase of Twitter stock sparked a price boost for the meme coin. Following the acquisition, the DOGE price surged by more than 10%. According to CoinGecko data, the coin meme peaked at $0.1570, which was the highest value since February 13.

Elon Musk influences DOGE price yet again

According to a US securities filing made on Monday, Elon Musk reportedly acquired up to 9.2% of the Twitter stock, worth $2.89 billion. With respect to the NYSE price of Twitter, Elon Musk became the company’s largest shareholder, even four times bigger than Jack Dorsey’s 2.25 percent stake.

As a result of Elon Musk’s recent purchase, the entrepreneur now has more than 73 million shares on Twitter. It’s no surprise that Dogecoin’s price was affected by Elon Musk’s interest in Twitter. Despite not being involved with the creators Jackson Palmer and Billy Marcus, Elon has been one of the most important pioneers of the memecoin.

So far, neither the entrepreneur nor the social network has spoken out or clarified his future involvement in company decisions. In addition to commenting on cryptocurrencies, he made a name for himself by condemning the use of NFTs as profile pictures. He polled his followers, asking if the social network is a place where speech is free. According to respondents, 70% said no.

Proponents of Doge have also claimed that, given his current stance on Twitter, the social network would most likely start accepting DOGE in payment. For years, Elon Musk has been giving Dogecoin free publicity on Twitter and other platforms, which has on numerous occasions directly boosted the price of the coin. 

He had told Time Magazine in December 2021 that he thinks Dogecoin is superior for transactions to Bitcoin. The billionaire’s new tweets prompted DOGE to surge 500% in only three days in April. He promised to discuss cryptocurrency in his Saturday Night Live appearance, pushing the asset to an all-time high of $0.73 before it aired.

Despite the fact that Musk’s interest in Dogecoin is unknown, he has made statements about other cryptocurrencies, which have impacted prices. After Musk stated that he owned some of the digital currency in July 2021, the BTC price rose by 8% over $32,000.

Despite this, Musk still impacts the costs of DOGE and other cryptocurrencies, although his “power” in the market is decreasing due to the crypto winter. Despite the entrepreneur’s continuing enthusiasm, the cryptocurrency is now 80% below its all-time high. Musk still faces charges of market manipulation as a result of his power. Tesla has already seen substantial Bitcoin earnings as a result of his efforts.

Dogecoin remains under Musk’s influence. Is it a bad thing?

Musk has made several tweets about cryptocurrencies on Twitter, causing prices to fluctuate and showing how Musk’s single-action influences the price of Dogecoin. It trickles down to just dancing to Elon Musk’s tune. Musk is no stranger to wreaking havoc on traditional and cryptocurrency markets with his tweets. His prior remarks have sent the prices of several meme coins and bitcoin (BTC) into the stratosphere.

While it’s impossible to know whether Musk will push for DOGE to become the official cryptocurrency of Twitter on social media, it’s not out of the question. The richest man in the world has been a long-time vocal advocate of DOGE as a genuine and preferred type of cryptocurrency payment.

What is the final verdict? Is Musk aiming to take over Twitter? What is his strategy for Dogecoin? Despite the re-hype regarding Dogecoin, the cryptocurrency’s path continues to be hazy. When a strong, bullish surge in the market occurs, it generally has a retracement.

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Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

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