TIMES.KY

Cayman Islands, Caribbeanand International News
Thursday, Jul 18, 2024

Dogecoin tumbles! Is Elon Musk's influence on cryptocurrencies declining?  

Dogecoin tumbles! Is Elon Musk's influence on cryptocurrencies declining?  

Despite Elon Musk’s announcement about Tesla holding on to its Dogecoin reserves, the cryptocurrency continued to dip for two days straight.

Despite Tesla announcing the company would continue to hold on to Dogecoin, the memecoin slipped five per cent on Thursday. It further slipped one per cent on Friday morning (IST).

Typically, an assurance from Elon Musk or Tesla would lead to a rally; so what has changed? Why have buyers not reacted? Could this be a sign the world's richest man is losing his influence on crypto markets?

No 'Diamond Hands' approach


Earlier in the week, Tesla sold three-fourths of its Bitcoin holdings to pad up its cash reserves. The automaker was one of the first mainstream companies to accept Bitcoin as a viable payments option in February 2021.

Crypto markets commentator Sharat Chandra believes this could be one of the reasons for the crypto community’s tepid response to Elon Musk’s latest comment in favour of Doge.

“Musk is no longer advocating the ‘Diamond Hands’ approach to Bitcoin. Crypto maximalists, therefore, aren't responding positively to ‘Dogefather's’ public comments on Dogecoin,” he told Business Today.

Chandra said, “Tesla's second-quarter earnings report revealed that Tesla has liquidated approximately 75 per cent of its Bitcoin holdings to purchase fiat to shore up its balance sheet by $936 million in cash.”

Bear market trend


Smit Khakhkhar, Tech Diligence at Delta Blockchain Fund, told Business Today that the current lukewarm response of the crypto community to Musk’s comments can be attributed to the general reluctance of investors around investing in a bear market.

He said, “During the height of the bull market, price movements were sensitive to Elon's tweets and comments. Now, due to the fall of crypto prices, there's fear among crypto investors. This could be a reason that the markets are not sensitive to his comments anymore.”

And, it's not just Dogecoin. The impact of the bear market is visible in the case of cryptocurrencies such as Ethereum, according to Khakhkhar.

He says, “Due to the downturn, the market is not sensitive to respond to even highly anticipated news like ETH 2.0 merge date confirmation.” Ethereum has plummeted to $1,000 levels from $4,000, the value at its all-time high.

Around $2 trillion worth of wealth has been wiped out from the cryptocurrency markets over the past eight months. Bitcoin crashed to $20,000 levels in July this year from its all-time high of $69,000 in November 2021.

'Beginning of the end'


There have been previous signs of Musk's declining influence on the crypto community. Earlier this month, when it was announced that The Boring Company, one of his infrastructure development companies, would start accepting Dogecoin as a valid payment option, he tweeted in favour of the decision.


Previously, tweets such as this would trigger massive rallies in the price of Dogecoin. But this time, the prices did not react much. Chandra stressed, “It might be the beginning of the end of Musk's disproportionate influence on crypto.”

Dogecoin's sensitivity to Musk's tweets


When Musk revealed in January that Tesla would start accepting Dogecoin as a valid payment option to buy merchandise, the cryptocurrency zoomed over 40 per cent.


The crypto token rallied around 15 per cent in April when he said that if he acquired the microblogging site Twitter, he would try to integrate Dogecoin as a viable payment option. The response was even stronger when he declared later that month that he would buy Twitter; Dogecoin shot up 30 per cent.

But Dogecoin prices have also reacted negatively to Musk’s comments. In May 2021, during an appearance on the late-night comedy show Saturday Night Live, Elon Musk called Dogecoin a “hustle” and the cryptocurrency plummeted over 35 per cent.

The distrust of crypto investors in Musk took a legal turn last month when Dogecoin investor sued Musk, Tesla, and SpaceX for $258 billion. Johnson accused Musk of operating the crypto as a pyramid scheme. As per the complaint, “Musk used his pedestal as 'World’s Richest Man' to operate and manipulate the Dogecoin pyramid scheme for profit, exposure, and amusement.”

Current rates


According to data from Coin Market Cap, Dogecoin is trading at $0.06966 as of 11:00 AM IST. Its 24-hour trading volume is $442,585,932. The crypto has fallen 1.02 per cent over the past twenty-four hours. With a live market cap of $9,231,966,860, it is ranked tenth as per market capitalisation.

Newsletter

Related Articles

TIMES.KY
0:00
0:00
Close
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Israel: Unprecedented Civil Disobedience Looms as IDF Reservists Protest Judiciary Reform
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Italian Court's Controversial Ruling on Sexual Harassment Ignites Uproar
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
BBC Personalities Rebuke Accusations Amidst Scandal Involving Teen Exploitation
A Swift Disappointment: Why Is Taylor Swift Bypassing Canada on Her Global Tour?
Historic Moment: Edgars Rinkevics, EU's First Openly Gay Head of State, Takes Office as Latvia's President
Bye bye democracy, human rights, freedom: French Cops Can Now Secretly Activate Phone Cameras, Microphones And GPS To Spy On Citizens
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
Unilever Plummets in a $2.5 Billion Free Fall, to begin with: A Reckoning for Misuse of Corporate Power Against National Interest
Beyond the Blame Game: The Need for Nuanced Perspectives on America's Complex Reality
Twitter Targets Meta: A Tangle of Trade Secrets and Copycat Culture
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
The New French Revolution
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
×