Bitcoin and Dogecoin Value Fluctuates after Elon Musk’s Recent Tweet

Bitcoin and Dogecoin Value Fluctuates after Elon Musk's Recent Tweet
Bitcoin and Dogecoin Value Fluctuates after Elon Musk's Recent Tweet

Last Updated on May 14, 2021 by Joydeep Ghosh

Dogecoin was pinned lower last week after Musk’s appearance in SNL, where he called Dogecoin as a hustle, but now with his latest tweet, the Dogecoin has leaped higher once again. The back-to-back tweets from Tesla boss Elon Musk about Bitcoin and Dogecoin have sent both of these on a wild ride now. Bitcoin pinned lower since the past two months, and to make matters worse after the recent tweet from Tesla boss now it has entered its lowest this week.

Since the last two months, with Musk’s tweets on Dogecoin, the market has been very unsteady, which sparked a hundred-fold rally on purchasing Dogecoin and increased its value to the highest.

While Tesla’s $1.5 billion bitcoin purchased helped it break past the $50,000 mark in February 2021 now taken a U-turn. With the recent tweet by Musk, Tesla has announced that they will stop accepting bitcoin in payment owing to environmental concerns, which might have caused investors to drop off from it. As a result, Bitcoin has gone down to nearly 15% this week, currently stands at $49,804.

Coming to Dogecoin’s performance this week after Musk’s appearance on SNL with a recent tweet, Musk now said this:

“Working with Doge devs to improve system transaction efficiency. Potentially promising.”

This tweet has now improved Dogecoin’s value to $0.43 to $0.52 on the Binance exchange.

It was unclear what Musk referred to as the environmental concerns. An associate professor of finance at the University of New South Wales business school in Sydney explained: the Dogecoin consumes around 0.12 KW hours of electricity per transaction. In contrast, compared to Bitcoin, Bitcoin consumes about 707 kilowatt-hours of electricity per transaction, according to data center provider TRG. Still, it isn’t easy to use to purchase anything through Bitcoin.

Dogecoin, which was worthless in 2020, now has surged and became the fourth largest cryptocurrency on the market. The good news is also there for Ether cryptocurrency, and the second-biggest cryptocurrency has soared more than 400 percent in last year. Lastly, it stood at $3,865 and had a steady week this time.

The vast movements have started to draw regulatory inspection. On Thursday, a Bloomberg report stated that said major exchange Binance was under investigation of Justice Department in the U.S, which added some price pressure on cryptos this week.

So this week was a roller coaster for Bitcoin and Dogecoin investors; we will be back with more interesting updates on these two cryptocurrencies; for more such interesting updates, stay tuned to MediaScrolls.

Read More: Dogecoin Cryptocurrency’s Value Drops after Elon Musk’s Appearance in SNL

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