Dogecoin Up 10% After Elon Musk Tweet

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Dogecoin: The price of dogecoin rose more than 10% on Monday morning (14), after Tesla CEO Elon Musk confirmed via Twitter that he will not sell his cryptocurrencies. Also mentioned by him in the message, bitcoin and ethereum also ended up benefiting.

Responding to a post about inflation, the billionaire said it’s better to have a valued home or company shares rather than dollars at times when inflation is rising. He then clarified that he “still owns and will not sell” his crypto assets: bitcoin, ethereum and dogecoin.

Minutes after the SpaceX owner’s tweet, the price of the doge rose from US$0.111 (R$0.56 at today’s price) to US$0.122 (R$0.62). But in the sequence, the digital currency ended up retreating a little, trading at US$ 0.113 (R$ 0.57).

Experts in the cryptocurrency market believe that the spike in dogecoin’s appreciation was driven by trading bots. These automated accounts have the ability to track token mentions from popular social media profiles such as Musk’s on Twitter, which currently has over 77 million followers.

Old relationship

The relationship between Musk and dogecoin is old and includes several mentions by the executive of digital money, often resulting in cryptocurrency appreciation. In May of last year, for example, he reported that he was working with the cryptocurrency’s developers to optimize the system’s efficiency, raising the price of doge by 22%.

Since January, the Tesla store has accepted dogecoin as a form of payment, but with some limitations. The use is restricted to the brand’s e-commerce and only in the purchase of accessories and licensed items, such as clothes and chargers, among others, leaving electric cars out.