Will Dogecoin bounce back after Musk’s comments?
If you’ve been paying attention to what’s trending on Twitter this morning, the first thing you will notice is that Dogecoin is trending again. Unlike the previous #DogeCointotheMoon hashtag, this time, it’s #DogeCoinTo1Dollar hashtag that has received about 30,000 tweets, as of the time of writing.
As we all know, one of the biggest supporters of Dogecoin is Tesla CEO Elon Musk. Dogecoin started as a joke in December 2013 based on the popular “doge” meme represented by a Shiba Inu dog as its logo, literally taken from the “Doge” meme
Elon Musk continues to hit the cryptocurrency headlines seemingly every day as he continues to have a huge influence and impact on how the virtual currency trades.
Of course, he can not be blamed for the latest news that has come out of China and their decision to ban all forms of cryptocurrency, however many will have been left infuriated by what he said about Dogecoin after an appearance on Saturday Night Live (SNL).
With many having already decided to buy Dogecoin UK due to its performance prior to Musk’s appearance on SNL, many would have felt that the cryptocurrency would have been positively impacted by the Tesla boss’ appearance.
What did Elon Musk say?
However, the exact opposite took place as he sent shockwaves after revealing that the ‘joke’ cryptocurrency coin that had been launched in 2013 was just a ‘hustle’.
Despite having grown into the fourth-largest coin and having been backed by Musk and other celebrities in recent months, the Tesla and Space X CEO ended a comedy skit that would have lasting implications on the future of Dogecoin.
During his skit, Musk said Dogecoin was “the future of currency. It’s an unstoppable financial vehicle that’s going to take over the world.” At this point, many who had already invested in the coin would have lit up, whilst others may have finally made a decision, however, his next sentence sent the stocks and price levels tumbling in an instant.
Co-host Michael Che asked him: “So, it’s a hustle?” to which Musk simply laughed and replied: “Yeah, it’s a hustle”. That one comment alone saw Dogecoin drop from $0.66 to $0.51 in just 45 minutes, whilst the morning saw it drop to $0.43. Over a 24-hour period, Dogecoin had fallen in value by more than 30 percent and is extremely far away from reaching the level of $0.74, which was the coin’s all-time high.
Will Dogecoin recover and bounce back?
As we all know, trying to predict and judge what a cryptocurrency will do in the market is an incredibly hard task to do successfully, as each coin can be extremely volatile. Furthermore, the news that China has banned this type of currency will have likely have had an even bigger impact than what Musk’s original comments would have had.
There have been occasions in the past where Dogecoin has been able to show a bounce-back ability, as the coin has been able to return to its previous value before going on to reach new highs. For example, Dogecoin managed to reach $0.66 on May 5 but dropped to $0.52 by May 7. However, on that very same day, it had returned to a value that was larger than the one on May 5, as it rose to its all-time high of $0.74.
Of course, Musk has continued to play a role in making cryptocurrency nosedive as he has recently gone back on his plans for Tesla to accept the virtual currency as a payment option, despite having invested $1.5 billion in Dogecoin just a few months prior.
Those hoping that it may bounce back may think it’s time to invest in Dogecoin. What happens next is anyone’s guess.