What occurred
Cryptocurrency Dogecoin (CRYPTO:DOGE) is up 12.6% within the final 24 hours, based on Coinbase, after Elon Musk tweeted an image of a Shiba Inu pet. Sure, that is the information that is driving this meme cryptocurrency increased.
So what
Elon Musk is arguably essentially the most influential individual within the Dogecoin ecosystem, and small feedback or tweets can impact the price of Dogecoin and its spinoff Shiba Inu with no different information. Meme traders, who’ve flooded the crypto market, appear to learn Musk’s tweets to search for some that means concerning the future of a cryptocurrency whose mascot is solely a Shiba Inu.
Picture supply: Getty Pictures.
Exterior of the Musk tweet, there is not any actual information within the cryptocurrency trade. Costs are blended at the moment, with greater names like Bitcoin and Ethereum up 2.4% and 1.6%, respectively, over the past 24 hours. However digital cash like Solana are down 4.9%, so the most important transfer is said to cyrptocurrencies with canines as their mascot.
Now what
This seems like a joke, however Dogecoin particularly will transfer sharply increased or decrease primarily based merely on just a few tweets. On the finish of the day, these are speculative traders pushing a speculative cryptocurrency increased, and nothing extra.
Keep in mind that the volatility and memes which can be driving Dogecoin increased at the moment might flip course tomorrow. However in cryptocurrency, volatility appears to be the secret, it doesn’t matter what you are invested in.
This text represents the opinion of the author, who could disagree with the “official” advice place of a Motley Idiot premium advisory service. We’re motley! Questioning an investing thesis — even one among our personal — helps us all assume critically about investing and make selections that assist us develop into smarter, happier, and richer.
