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Why is dogecoin going up?

Why is Dogecoin going up? Elon Musk and Twitter

  • Post category:News
  • Reading time:8 mins read

In recent days there has been a surge in Dogecoin’s price and many investors are curious as to why is Dogecoin going up? in this short article, you will read a summary of some of the things that have caused this up-surge in Dogecoin’s price during the past couple of weeks.

  • Table of contents
  • Why is Dogecoin going up?
  • An overall look at the price of Dogecoin
  • Dogecoin and Twitter

So… why is Dogecoin going up?

It’s not easy to point to specific reasons about Dogecoin that would explain its outsize move higher. But there’s an important general trend to point out. Retail investors are still trading cryptocurrency. Coinbase Global, enabling the trading of crypto, reported quarterly financial results earlier this month. The company mentioned that monthly transacting users on its platform grew by 44% just from the previous quarter. In addition, trading volume increased 38% during this period.

According to CoinMarketCap, Dogecoin is the world’s seventh-largest cryptocurrency by market capitalization. Therefore, as more people start trading crypto, Dogecoin is likely high on their list of coins to buy. This alone can be a good reason to answer the question: why is dogecoin going up.

Before, investors could not trade Dogecoin on Coinbase; however, the company began supporting the cryptocurrency on June 3, opening the door for Coinbase’s nearly 9 million users. Hence, like everything in economics, as demand for dogecoins outpaces supply, prices will start going up.

Why is Dogecoin going up?

Crypto investors are wondering whether Dogecoin is going up or down from this point. The answer to this question is hotly debated.

A company named Finder polled 42 cryptocurrency experts to get their take. The survey found that 80% believe Dogecoin is a bubble. But some of those experts believe the price will continue to head higher this year before the bubble pops next year. Some even believe $1 per dogecoin is possible this year! All of such news, of course, can be a reason as to why is dogecoin going up.

A closer look at the survey reveals a range of opinions, including Dogecoin being almost worthless by the end of the year.

In short, the opinions of the experts are divided.

But here’s the issue: They’re divided because no one really knows with any reliability what the future holds for Dogecoin. The experts are all just guessing.

In contrast to stocks, it’s hard to develop a strong conviction in a Dogecoin investment. You can develop strong convictions with stocks because they represent ownership stakes in a real-world business. It’s far easier to predict the future cash flows of a business that has a lot of recurring revenue. In that case, investors can construct a bullish thesis and invest a meaningful part of their portfolios in attractive opportunities. That’s not the case with cryptocurrencies like Dogecoin.

That is not to say that Dogecoin can’t go higher – it definitely can. And it certainly doesn’t mean don’t buy cryptocurrencies. It simply means to ground your level of conviction in reality and invest accordingly…

An overall look at the price of Dogecoin

The price of dogecoin popped on Monday afternoon following news that Twitter has accepted Elon Musk’s buyout deal.

The meme cryptocurrency jumped as much as about 27% after the announcement that Twitter will be purchased by an entity owned by the Tesla CEO. Dogecoin was last up 24.3%. Meanwhile, Twitter shares ended the day 5.6% higher.

Dogecoin launched as a fun project and a joke in the cryptocurrency space, went on a bull run last year as it gained popularity on social media and spawned a raft of other dog-themed coins. Doge expectations reached an all-time high as did the price of $0.74 on 8 May, a gain of 15,653% from the start of this year.

The price quickly fell on a “sell the news” response to Elon Musk’s appearance on the US TV show Saturday Night Live, when he referred to the cryptocurrency as a “hustle”, having talked it up in previous weeks.

The Dogecoin dropped as the broader cryptocurrency markets sold off, dropping as low as $0.16 on 20 July. 

Cryptocurrency markets bottomed out on 20 July, rising in part to a short squeeze on bitcoin and bullish sentiment after comments made by the likes of Twitter (TWTR) and Square (SQ) co-founder Jack Dorsey, ARK Invest founder Cathie Wood and Musk during a panel discussion at the B-Word conference, which considered how institutions can adopt cryptocurrency.

Market observers and investors such as Mark Cuban noted that as well as investing in dogecoin, holders tend to use it more than other cryptocurrencies to pay for goods and services. Cuban owns the Dallas Mavericks basketball team, which accepts dogecoin and several other cryptocurrencies as payment for tickets and merchandise.

Dogecoin and Twitter

Dogecoin, the original meme asset, is based on the 2013 Internet meme doge and was created in jest in the same year. It gained some relevance last year after the Tesla CEO endorsed it and continued hyping the cryptocurrency on social media.

Around that time, Musk became something of a cryptocurrency market mover with his tweet and bitcoin. In May of last year, his posts fueled dogecoin’s rally to its all-time high of 67 cents, per Coin Metrics.

Twitter’s former CEO and co-founder, Jack Dorsey, stepped away from the company in November to focus on efforts at his payments company, which has since rebranded to Block (from Square) to reflect broader ambitions in cryptocurrency and blockchain technology.

In addition to being a dogecoin influencer, Musk’s Tesla is one of the biggest corporate buyers of bitcoin. Those who hope to see Twitter integrate more crypto native features will be keeping an eye on whether or how Musk prioritizes crypto. Bitcoin’s censorship-resistant nature on the surface aligns with Musk’s vision for a free-speech utopia.

Elon Musk said: “Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated”

Twitter announced that Elon Musk has bought the social media giant. News of the deal came with shock, concern and cheers. Tesla CEO Elon Musk stands to be the next owner of Twitter, having pledged roughly $44 billion to buy the social platform and take it private.

All of the abovementioned quotes and paragraphs regarding Twitter and Elon musk will have (and already have) impacted the price of Dogecoin in the future and are some of the reasons why dogecoin is going up.

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