Elon Musk and Dogecoin. Is there a more iconic combination?
Well, yes, of course, there is. Still, Musk's longstanding association with Dogecoin reared its head again, as a single tweet from the Tesla and SpaceX lead sent the price of the meme-crypto soaring once more.
Musk's ability to influence the price of Dogecoin and other cryptocurrencies has come under repeated scrutiny. How can one man have such influence over an entire financial class to make or break a crypto portfolio with a single tweet?
Elon Musk's Dogecoin Tweet Sends Price Soaring
Elon Musk tweeted to his 66 million followers that Tesla would consider making some of its Tesla merchandise buyable with Dogecoin. Obviously, with such a considerable number of followers, his words have the power to influence financial markets. If even five percent of those users go and buy Dogecoin on the basis they might be able to use it to buy Tesla merch (or even cars at a later date, who knows?!), that's still three million people.
That level of activity doesn't go unnoticed. After Musk's tweet, the Dogecoin price rose almost instantaneously from $0.16 to $0.23, though it saw even larger gains on individual exchanges.
Most notably, the price dropped back to its pre-tweet levels after around 24-hours, illustrating just how much power Elon Musk has over the Dogecoin market.
Does Musk Have Too Much Power Over Crypto Prices?
Elon Musk undoubtedly understands his considerable ability to influence cryptocurrency prices. Earlier in 2021, he sent the price of Dogecoin rocketing with a series of tweets endorsing the meme crypto before sending the price of Bitcoin spiraling with the announcement that Tesla would no longer accept Bitcoin transactions.
So, does Musk have too much influence over crypto prices?
Quite simply, yes. As one of the world's leading tech engineers, Musk carries a huge following, as seen by his more than 60 million Twitter followers. Whether Elon means to or not, his tweets have a very serious and directly relatable influence on crypto prices.