Why Elon Musk’s DOGE Fixation is Good for Bitcoin
The undoubted star of the cryptocurrency world over the past couple of months has been Dogecoin. The meme coin created by Billy Markus as a joke in 2013 has surged 800% in the last month alone.
Billionaire Elon Musk who has his own Bitcoin story has developed quite a fixation with Dogecoin. From supportive tweets calling himself ‘The Dogefather’ to naming space rockets DOGE-1, Elon Musk’s constant DOGE support has been good for Dogecoin, but also very good for Bitcoin.
After Musk appeared on Saturday Night Live, DOGE tanked almost 30% in 24 hours. However, in the same period, Bitcoin rose nearly 6%. What this indicates is that whatever coins come and go, Bitcoin has now become immune to ‘fad trading.’
Bitcoin has grown to such a level now, backed by billions of dollars in institutional investment, that extreme volatility will be rarer and rarer, making it an even more attractive investment option. Bitcoin has developed its own ecosystem that is less influenced by the wild fluctuations in other cryptocurrencies.
The Tesla CEO, the world’s second-richest man, has a very high profile. As well as his TV and podcast appearances, he has a Twitter following of more than 53.8 million people. People listen to what he says, he has influence. So, when ‘The Dogefather’ tweets support for DOGE, he is legitimizing all crypto, especially Bitcoin, the granddaddy of digital currencies.
Another reason why Elon Musk’s DOGE fixation is good for Bitcoin is for a long time. Bitcoin has pretty much been the only focus for the crypto world. Sure, Ethereum is popular, and others like XRP have hogged a bit of the limelight for a while, but since its inception, Bitcoin has dominated most of the crypto headlines.
Having another crypto to take some of the limelight from Bitcoin is a good thing. It means that Bitcoin can continue its gradual ascent without some of the intense scrutiny which often leads to high volatility, something which scares crypto investors and adopters. The fact that Bitcoin has been relatively stable since February, bouncing around the $55,000 mark, proves that, although still volatile, Bitcoin is showing strong signs of stability - exactly what is needed for long-term growth.
Elon’s love affair with DOGE, Bitcoin, and crypto, in general, is entertaining to watch, but also profitable to trade. Keep an eye on Elon’s next movements and trade Bitcoin at Cointandem Exchange.