Has Dogecoin (CRYPTO:DOGE) ever had a greater pal that Elon Musk? Nicely, not at the moment. For months, the Tesla (NASDAQ:TSLA) boss has off-and-on hyped or denigrated the one-time joke cryptocurrency, serving to to drive the previous sub-$0.01 coin’s worth previous $0.72.
However at the moment, Musk’s distraction from Dogecoin stands out as the purpose the worth is diving — and in addition the explanation that Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) are each shifting larger.
To recap, this is how the values stand as of 1:30 p.m. EDT:
- Bitcoin is up 1.2%
- Ethereum is up 3%
- Dogecoin is down 3.5%.
So why are Bitcoin and Ethereum outperforming Dogecoin at the moment? Two causes (and Musk is part of each).
Within the case of Bitcoin, Musk commented at the moment that though he nonetheless must do “a little bit bit extra due diligence to verify” this, as quickly as he sees that renewable power is getting used for at the very least 50% of Bitcoin mining, Tesla will “probably” resume accepting Bitcoin as cost for Tesla electric cars.
In the meantime with regards to Ethereum, Musk confirmed that he personally owns a few of that cryptocurrency in addition to Bitcoin — an offhand remark that nonetheless, at one level at the moment, despatched Ethereum costs up as a lot as 12%!
This is the factor: On the similar “B Phrase Convention” at which Musk made the feedback which are lifting Bitcoin and Ethereum costs at the moment, Musk additionally confirmed that he owns Dogecoin as nicely. I think that almost all traders already assumed that, nevertheless, given the cryptocurrency’s frequent look on Musk’s Twitter feed.
In distinction, the revelation about his proudly owning Ethereum, and the affirmation that Bitcoin might quickly change into authorized tender for Tesla-shopping as nicely, had been each “new” information — and so they’re shifting the cryptocurrency market accordingly.
This text represents the opinion of the author, who might disagree with the “official” suggestion place of a Motley Idiot premium advisory service. We’re motley! Questioning an investing thesis — even one in every of our personal — helps us all assume critically about investing and make choices that assist us change into smarter, happier, and richer.