Elon Musk has recently renewed his support for Dogecoin. In a Twitter post, he declared that he “still supports Dogecoin.” He also said he bought it and will continue to buy it. But altcoin analyst Andrew Button urges investors to be cautious, despite the billionaire backing.
Elon Musk’s tweet raises Doge price by double digits amid altcoin market sell-off
When a Twitter user asked Musk to confirm his purchase of Dogecoin, Musk said it was true. The Dogecoin price spiked shortly after Musk’s comments.
It was the first major development for DOGE since the 2021 rally. Elon Musk spent most of the last year praising Dogecoin on Twitter. It also contributed to a dramatic increase in the value of Dogecoin in the first half of the year. We see it doing this again after the last Dogecoin share. Then there was a sharp increase in the price of the cryptocurrency. As Kriptokoin.com, we have transferred the details in this article.
Obviously, Elon Musk is a big fan of Dogecoin. A lot of people seem to think they’ve made a big investment in DOGE. But is it really so? Those who bought Dogecoin in the late 2021 rally lost a significant amount of money. In this article, let’s investigate whether Elon Musk bought Dogecoin after the last rally.
Why does Elon Musk love Dogecoin?
The first issue about Musk’s investment in Dogecoin is that it is based on his belief that the meme coin can be used as a currency. The Tesla CEO called Dogecoin the “people’s crypto” last year.
By that, Musk means practical to use and own. He toyed with the idea of accepting cryptocurrencies for merchandise purchases and observed that many of his employees use it. So, Musk seems more enamored with DOGE’s use case than with its wild capital gains potential. Its approval may not necessarily mean that he thinks Dogecoin is a good investment.
Will Elon Musk continue to support the altcoin project?
After identifying Elon Musk’s reasons for loving Dogecoin, we can now move on to the question of whether the cryptocurrency is buying. Andrew Button, in this regard, thinks that Musk has not invested in Dogecoin recently.
Dogecoin has lost the strong hype around it after its massive rally in 2021. Elon Musk’s tweets are no longer as effective and long-lasting as they used to be. For example, Dogecoin price has dropped by about 8.65% since the last rally. Clearly, Musk, who has 95 million Twitter followers, still has the potential to influence crypto prices. However, apart from short-term reactions, the rallies do not last long.
Second, Elon Musk apparently does not hold Dogecoin with the intention of generating spectacular returns. Instead, he sees it as a crypto project worth supporting because of its potential for real-world use. Potentially, DOGE has a chance to rise even more in the future if Musk’s views on this matter are confirmed to be correct. However, Musk’s own purchase will not have this effect.
How is Dogecoin doing in everyday use?
Dogecoin has one of the most interesting histories of any cryptocurrency. The cryptocurrency, which started as a joke, has been adopted as a payment method by Mark Cuban’s business. It later won Elon Musk’s endorsement. Now, after Tesla, SpaceX is also preparing to accept DOGE in payments. However, a 90% depreciation from the ATH price poses some risks for the meme coin.
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