Dogecoin had a significant increase in value on Thursday when Tesla CEO Elon Musk returned to Twitter and praised the cryptocurrency based on jokes.
On Tuesday, Musk announced that he would be off Twitter for an extended period of time. Musk returned to the social media network early Thursday morning and shared a modified image from the movie “Lion King” in which he appeared to be clutching the Doge meme. After posting the photo, he followed it up with the simple comment, “Dogecoin is the people’s cryptocurrency.”
In recent weeks, Musk’s tweets have boosted the stock prices of a wide range of companies, from GameStop to Etsy.
The coin soared as high as $0.0597. It represented an almost 59 percent increase in value from where it stood just 24 hours earlier. Dogecoin’s deal will rise throughout 2021 due to increased demand from retail investors and January’s broad crypto rally. The cost of the coin has increased by more than 800 percent year-to-date.
Musk’s Tweets Makes Crypto and Companies Soar
Musk’s tweets have recently gained new significance in the financial markets due to his recent comments. Signal Advance, a micro-cap technology company, had its stock price soar in January when Musk tweeted use Signal. It was most likely a reference to the encrypted communications service rather than the small company.
Investors appeared to have made the mistake of conflating Signal Advance with Signal, and the encrypted communications network Musk encouraged his supporters to utilize.
NASDAQ-listed Signal Advance, a micro-cap technology company that trades on the untoward request, saw its stock price swell to as high as $70.85 on Monday, over from$0.60 just before Musk’s tweet on Thursday morning.
The meme-based cryptocurrency is still far from the all-time highs it reached just a few weeks ago. Prices for Dogecoin skyrocketed in late January as ordinary traders congregating in online forums pooled their resources to bid up the cryptocurrency. On January 28, the token reached an all-time high of $0.0792 before plunging back below the $0.03 mark.
Etsy’s stock soared later in the month when Musk claimed on Twitter that he “kinda loves” the online marketplace for handmade goods.
One of the most remarkable instances is when the Tesla CEO, Elon Musk, helped GameStop stock soar during the Reddit-trader controversy by simply tweeting “GameStonk!!” and connecting to the investment community r/wallstreetbets.
It isn’t just the stock market that has benefited from Musk’s recommendations. As Bitcoin prices began to rise, the world’s wealthiest person changed his Twitter bio to “Bitcoin” in January.
Musk has already stated that he supports Dogecoin. The token’s value soared after the chief executive just said “One word: Doge” in a tweet in December.
As of 8:20 a.m. ET on Thursday, Dogecoin was trading at $0.0495.
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