Dogecoin surges after self-proclaimed 'Dogefather' Elon Musk strikes deal to buy Twitter
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Price swings for the coin often go hand in hand with Mr Elon Musk's tweets or actions.
PHOTO: REUTERS
NEW YORK (BLOOMBERG) - Dogecoin, the cryptocurrency with a shiba inu meme that has long been a favourite of Mr Elon Musk, surged almost 30 per cent after news that Twitter has accepted the billionaire entrepreneur's offer.
The meme coin jumped to 17 US cents. It was a standout on a day when other cryptocurrencies from Bitcoin and Ether to Solana and Polkadot remained relatively flat.
Mr Musk has been a huge proponent of Dogecoin, going so far as to call himself the "Dogefather" in a tweet last April. Price swings for the coin often go hand in hand with Musk tweets or actions.
He said on Twitter in January that Dogecoin could be used to buy Tesla merchandise.
"Elon has openly supported Dogecoin and previously talked favourably of this token," said Mr Teong Hng, chief executive of Hong Kong-based crypto investment firm Satori Research. "(The) market is anticipating that he may incorporate Dogecoin as a payment system, hence this rally."
Mr Musk has been an early corporate champion of adopting digital currencies and has helped spur the popularity of Dogecoin, a cryptocurrency that started as a joke in 2013.
"This is very much speculation. To my knowledge, Elon has not talked about Dogecoin integration plans," said Ms Noelle Acheson, head of market insights at Genesis Global Trading. "But the possibility, even if it is remote, is enough to get traders excited about the potential gain in Doge adoption."
Mr Musk has roiled crypto markets in the past. In February 2021, Tesla said it had purchased US$1.5 billion (S$2 billion) in Bitcoin and planned to accept it as a payment, triggering a rally in its own stock as well as the currency. But Mr Musk did an about-face the following May, sending the value of Bitcoin and other cryptocurrencies sliding.
Bitcoin slid early on Monday by as much as 3.3 per cent to US$38,223, the lowest since March 15, and at one point was down more than 20 per cent from last month's high. It was little changed after paring the earlier loss.
