Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Dogecoin tumbles! Is Elon Musk's influence on cryptocurrencies declining?  

Dogecoin tumbles! Is Elon Musk's influence on cryptocurrencies declining?  

Despite Elon Musk’s announcement about Tesla holding on to its Dogecoin reserves, the cryptocurrency continued to dip for two days straight.

Despite Tesla announcing the company would continue to hold on to Dogecoin, the memecoin slipped five per cent on Thursday. It further slipped one per cent on Friday morning (IST).

Typically, an assurance from Elon Musk or Tesla would lead to a rally; so what has changed? Why have buyers not reacted? Could this be a sign the world's richest man is losing his influence on crypto markets?

No 'Diamond Hands' approach


Earlier in the week, Tesla sold three-fourths of its Bitcoin holdings to pad up its cash reserves. The automaker was one of the first mainstream companies to accept Bitcoin as a viable payments option in February 2021.

Crypto markets commentator Sharat Chandra believes this could be one of the reasons for the crypto community’s tepid response to Elon Musk’s latest comment in favour of Doge.

“Musk is no longer advocating the ‘Diamond Hands’ approach to Bitcoin. Crypto maximalists, therefore, aren't responding positively to ‘Dogefather's’ public comments on Dogecoin,” he told Business Today.

Chandra said, “Tesla's second-quarter earnings report revealed that Tesla has liquidated approximately 75 per cent of its Bitcoin holdings to purchase fiat to shore up its balance sheet by $936 million in cash.”

Bear market trend


Smit Khakhkhar, Tech Diligence at Delta Blockchain Fund, told Business Today that the current lukewarm response of the crypto community to Musk’s comments can be attributed to the general reluctance of investors around investing in a bear market.

He said, “During the height of the bull market, price movements were sensitive to Elon's tweets and comments. Now, due to the fall of crypto prices, there's fear among crypto investors. This could be a reason that the markets are not sensitive to his comments anymore.”

And, it's not just Dogecoin. The impact of the bear market is visible in the case of cryptocurrencies such as Ethereum, according to Khakhkhar.

He says, “Due to the downturn, the market is not sensitive to respond to even highly anticipated news like ETH 2.0 merge date confirmation.” Ethereum has plummeted to $1,000 levels from $4,000, the value at its all-time high.

Around $2 trillion worth of wealth has been wiped out from the cryptocurrency markets over the past eight months. Bitcoin crashed to $20,000 levels in July this year from its all-time high of $69,000 in November 2021.

'Beginning of the end'


There have been previous signs of Musk's declining influence on the crypto community. Earlier this month, when it was announced that The Boring Company, one of his infrastructure development companies, would start accepting Dogecoin as a valid payment option, he tweeted in favour of the decision.


Previously, tweets such as this would trigger massive rallies in the price of Dogecoin. But this time, the prices did not react much. Chandra stressed, “It might be the beginning of the end of Musk's disproportionate influence on crypto.”

Dogecoin's sensitivity to Musk's tweets


When Musk revealed in January that Tesla would start accepting Dogecoin as a valid payment option to buy merchandise, the cryptocurrency zoomed over 40 per cent.


The crypto token rallied around 15 per cent in April when he said that if he acquired the microblogging site Twitter, he would try to integrate Dogecoin as a viable payment option. The response was even stronger when he declared later that month that he would buy Twitter; Dogecoin shot up 30 per cent.

But Dogecoin prices have also reacted negatively to Musk’s comments. In May 2021, during an appearance on the late-night comedy show Saturday Night Live, Elon Musk called Dogecoin a “hustle” and the cryptocurrency plummeted over 35 per cent.

The distrust of crypto investors in Musk took a legal turn last month when Dogecoin investor sued Musk, Tesla, and SpaceX for $258 billion. Johnson accused Musk of operating the crypto as a pyramid scheme. As per the complaint, “Musk used his pedestal as 'World’s Richest Man' to operate and manipulate the Dogecoin pyramid scheme for profit, exposure, and amusement.”

Current rates


According to data from Coin Market Cap, Dogecoin is trading at $0.06966 as of 11:00 AM IST. Its 24-hour trading volume is $442,585,932. The crypto has fallen 1.02 per cent over the past twenty-four hours. With a live market cap of $9,231,966,860, it is ranked tenth as per market capitalisation.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Budapest Central European Fashion Week Kicks Off
U.S. Celebrates Labor Day
Hungarian National Team Captain Scores Epic Goal
EU is getting aggressive: Four AfD Candidates Die Unexpectedly Ahead of North Rhine-Westphalia Local Elections
Japanese Customer Sways from VW to BYD after “Unbelievable” Test Drive amid Dealership Expansion
Nestlé Removes CEO Laurent Freixe Following Undisclosed Relationship with Subordinate
Pickles are the latest craze among Generation Z in the United States.
Giuliani Seriously Injured in Accident – Trump to Award Him the Presidential Medal of Freedom
Deadline Day Delivers Record £125m Isak Move and Donnarumma to City
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
Lula and Putin Hold Strategic BRICS Discussions Ahead of Trump–Putin Summit
White House Eyes Budapest for Peace Talks
Cave Diving Beneath the Streets of Budapest
Another American Restaurant Chain Opens in Budapest
Hungarian Opposition Politician Supports Ukrainian Commander
Opposition Leader Threatens Media Outlets
American Airlines Adds New Flights to Budapest
F1 Hungarian Grand Prix Wraps Up
WhatsApp is rolling out a feature that looks a lot like Telegram.
U.S. Trade Representative says Washington still negotiating trade deals after court rules tariffs illegal
Von der Leyen says Europe drawing up 'precise' plans to send troops to Ukraine
Kremlin accuses Europe of hindering Trump’s peace efforts in Ukraine
×