Musk drives Dogecoin to record highs
Even this weekend’s significant setback need not spell the end of the current crypto hype. Stronger price fluctuations, especially on weekends, are not unusual for Bitcoin & Co.
Bitcoin investors such as Elon Musk (49) also try to drive up the price of cyber currencies via tweet on days with weaker trading volumes. Thus, Tesla CEO Musk ensured with another tweet about Dogecoin that the cryptocurrency increased rapidly and climbed to a record high.
The attempts of Musk and other investors to push the value of their own investments via tweet is viewed critically by the financial regulator. Market participants also expressed the suspicion that some crypto investors shifted from Bitcoin into “smaller” cryptocurrencies – in the hope of making quick profits again.
Market value of Dogecoin exceeds 50 billion dollars
Once again, it’s Tesla CEO Elon Musk who fuels the price of a cryptocurrency with a tweet. This time it’s Dogecoin, whose price literally exploded.
The internet community’s latest investment craze, the cryptocurrency Dogecoin, has hit a record high: for the first time, the market value of all Dogecoins in circulation has risen to more than $50 billion. By comparison, just about eight weeks ago, the market value was only around ten billion dollars.
The cryptocurrency was boosted once again by a tweet from Tesla CEO Elon Musk (49), who is a self-confessed fan of digital currencies and, for example, already accepts Bitcoin, the largest and best-known of all cryptocurrencies, as a means of payment for his Teslas. Musk had posted a painting of a dog barking at the moon on April 15, captioning the image “Doge Barking at the Moon.” The phrase “barking at the moon” is often used to describe tremendous growth in the context of cryptocurrencies. The tweet went viral – and the Dogecoin price exploded.
On Friday alone, the price jumped another 90 percent. Over the course of the week, Dogecoin has thus climbed by almost 300 percent. According to the website Coinmarketcap.com, the price increased to 34 U.S. cents, after rising to as much as 45 U.S. cents at times. As recently as February, the price was only 8.6 US cents. This puts the cryptocurrency itself in the shade of bitcoin’s performance.
Bitcoin billionaire warns of risks
Dogecoin was developed in 2013 by software engineers Billy Markus and Jackson Palmer. Originally, the cryptocurrency was intended as a parody of Bitcoin. The name is based on the English term for dog (“dog”). The symbol of Dogecoin shows the face of an Asian dog with big eyes – once a fun image (“meme”) frequently used on the Internet. It is no joke anymore, you can even gamble with DOGE in online casinos like this.
Unlike Bitcoin, there is no limit to the number of digital coins that can be generated through “mining.” In “mining,” users provide computing power to encrypt transactions and are compensated in the corresponding cryptocurrency. Because Dogecoin’s encryption is simpler, transactions can be processed faster than Bitcoin or Litecoin.
Cryptocurrencies are currently experiencing an unprecedented boom. Driven by the fulminant IPO of the largest cryptocurrency platform Coinbase, for example, the price of Bitcoin rose last week to the record value of 64,000 dollars – from 6500 dollars in April 2020. Many investors get carried away by the exploding prices and suppress the risks, which lie primarily in the violent price fluctuations. In addition, digital currencies are threatened by far-reaching regulations. Just on Friday, for example, Turkey had banned payments with Bitcoin. ECB chief Christine Lagarde (65) is also calling for global regulation.
Bitcoin price slumps by double digits
The IPO of the U.S. crypto exchange Coinbase had driven the bitcoin above the mark of 64,000 U.S. dollars on Wednesday. Now the cryptocurrency buckles again, investors take profits.
Bitcoin investors take profits: The price of the largest cryptocurrency collapsed by more than 10 percent in the night to Sunday. Most recently, bitcoin was trading at around $55,000, about $10,000 lower than last Wednesday, when the digital currency had reached a record high of around $65,000. The losses since the peak amount to more than 15 percent (see current Bitcoin chart). On the other hand, profit-taking at this level is not unusual: the bitcoin price has increased almost tenfold since March 2020.
The hype around the digital currency had reached a temporary peak on Wednesday last week: on the day of the IPO of the cryptocurrency platform Coinbase in the USA (everything about the IPO can be found here), the Bitcoin had temporarily exceeded the mark of 65,000 US dollars. The value of all cryptocurrencies currently in circulation worldwide reached more than two trillion dollars on Wednesday, as calculated by the platform Coinmarket.cap.
Crypto exchange Coinbase, which was last valued at nearly $100 billion on the stock market, has more than 50 million customers worldwide. Financial markets had been feverishly anticipating the platform’s debut for weeks. For the booming, but long dismissed as an adventurous fringe of the financial world, cyberdevice niche, it was a milestone on its way into the Wall Street mainstream.