A week after asking his Twitter followers whether his electronic vehicle company Tesla should start accepting Dogecoin, Elon Musk once again tweeted on Thursday, May 20, supporting the cryptocurrency, leading to a rise in price of the meme cryptocurrency.
Following a tweet by Musk, the price of Dogecoin spiked to $0.40 from $0.29 earlier in the day after a frenzied sell-off on May 19.
Musk tweeted, “How much is that Doge in the window?"
According to Yahoo News, Musk’s tweet comes just hours after the cryptocurrency market plummeted into the red, reportedly following a renewed crackdown in China whose central bank issued a statement asking its financial institutions not to accept or deal with cryptocurrencies.
Elon Musk’s recent tweets about cryptocurrencies have created a sharp rise and fall in the price in the crypto market. The price of the largest cryptocurrency Bitcoin continued a slide after Musk’s flip-flops on Tesla’s holding of the digital currency.
Musk first raised concern about the environmental impact of Bitcoin mining and announced Tesla won’t accept the cryptocurrency payment for its cars. Then in another tweet, he mentioned Tesla not selling $1.5 billion worth of Bitcoins in its possession.
Bitcoin's value fell below $40,000 on May 19 following the frenzy created around Elon Musk’s tweets over the last week.
Last week, the Tesla co-founder asked his 54 million followers, “Do you want Tesla to accept Doge,” referring to the meme-cryptocurrency Dogecoin, which he has been endorsing since over a year.
Musk recently made another announcement that Dogecoin would be accepted by SpaceX for a satellite launch to the moon. The billionaire had tweeted, “SpaceX launching satellite Doge-1 to the moon next year -- Mission paid for in Doge -- 1st crypto in space --1st meme in space. To the mooooonnn!! (sic).”
According to Coinbase, the Dogecoin is currently trading at a value of $0.41 with a 20 percent hike in the last 24 hours.
(Edited by : Shoma)
First Published: IST