It was probably the most closely traded cryptocurrencies earlier this 12 months, however Dogecoin (CRYPTO:DOGE) hasn’t been a very good funding these days, falling round 75% from its Might excessive. Nevertheless, the dog-themed cash confirmed some indicators of life in the present day, gaining 5.5% over the earlier 24 hours as of three p.m. ET, in response to CoinMarketCap. This modest leap might be associated to robust returns within the broader cryptocurrency market in the present day. However there’s one more reason it is up as nicely.
Elon Musk is the CEO and founding father of Tesla, though he prefers to name himself the “Technoking” of Tesla as an alternative. And generally he even goes by one other affectionate title: the Dogefather, so named due to his expressed love of Dogecoin. And at roughly 2 a.m. this morning, the Dogefather was on social media expressing his love of Dogecoin but once more.
It began with an alternate on Twitter as Twitter’s founder Jack Dorsey — a crypto fanatic himself — talked about how some cryptocurrency tasks are extra decentralized than others. Dorsey then tweeted that he wasn’t “anti ETH,” a reference to Ethereum. To this, Musk offered the unsolicited reply: “That is why I am professional Doge.” Buying and selling quantity for Dogecoin instantly picked up following Musk’s tweet.
It ought to be identified that Musk does not appear to ignite the extent of volatility with Dogecoin that he did earlier in 2021. Dogecoin gave again a few of its positive aspects not lengthy after getting the preliminary increase from Musk. The larger positive aspects in the present day coincided with robust efficiency throughout the broader cryptocurrency market, together with Bitcoin which rapidly rose from round $48,500 and briefly surpassed $51,000.
Cryptocurrencies have a tendency to maneuver up and down as a pack over the quick time period. As long-term traders, nonetheless, we’re searching for cryptocurrencies which are exhibiting the best promise of long-term adoption. Dogecoin might go up on some days as a result of use circumstances and adoption are rising. Nevertheless, I imagine it is honest to say that is not why Dogecoin was up in the present day. Due to this fact, traders should not take in the present day’s worth motion as affirmation or negation of an current investment thesis. At present’s information can safely be filed away as irrelevant for long-term traders.
This text represents the opinion of the author, who could disagree with the “official” suggestion place of a Motley Idiot premium advisory service. We’re motley! Questioning an investing thesis — even considered one of our personal — helps us all suppose critically about investing and make selections that assist us grow to be smarter, happier, and richer.