A sudden reappearance by the SpaceX and Tesla CEO has just one focus: a meme-based altcoin that has changed from a Shiba Inu dog into the Lion King. The meme-based crypto Dogecoin (DOGE) gained about 25% in minutes on February 4 after a new endorsement from the richest man in the world.
DOGE In New ‘Elon Pump’
Data acquired from TradingView showed DOGE/USD rebound above $0.05 per token on Thursday. The crypto edged towards new all-time highs.
Musk is known for his name dropping Bitcoin and Dogecoin on Twitter. However, a few days ago he said that he was taking a break ‘for a while.’ But it appears like his break is over since he returned to post a picture of a rocket and the moon.
He then added ‘Doge’ in a subsequent comment. His later tweet read “Ur welcome,” accompanied by an edited image of the Dogecoin shiba inu mascot as Simba in the Disney film, “The Lion King.”
ur welcome pic.twitter.com/e2KF57KLxb
— Elon Musk (@elonmusk) February 4, 2021
Moments later, Dogecoin surged from $0.04 to the local highs of $0.058, while trade volume also exploded by more than 100% compared to February 3.
The hashtag #ThanksElon also started to trend in the US.
Bitcoin Targets $40,000 Resistance
According to previous reports, Musk had already helped catalyze a Dogecoin bull run by adding onto the existing hype in the market created by the now-infamous Reddit group, r/Wallstreetbets.
While speaking in an interview with Clubhouse, Musk described his different interactions with the crypto as ‘jokes’. Nevertheless, he suggested that its best days could still lie ahead. He summarized:
“Dogecoin is made as a joke to make fun of cryptocurrencies, obviously, but fate loves irony.”
The Tesla CEO also hit the headlines after causing a bitcoin price spike by making it the only item in his Twitter biography. It came weeks after another characteristically backhanded compliment where he said that Bitcoin was “almost as BS as fiat money.” He added to Clubhouse:
“I had to think about it for a bit, but I do at this point think that Bitcoin is a good thing and so I am a supporter of Bitcoin, like I said — late to the party but I am a supporter of Bitcoin.”
February 4 saw BTC/USD start a comeback of its own. It hit levels previously seen just briefly due to Musk’s actions last week.
Musk Deletes ‘Bitcoin’ From Twitter Bio
At the time of publishing, bitcoin is consolidating above $37,800 even as Elon Musk appears to have removed ‘Bitcoin’ from his profile resulting in “Elon has gone full doge” comments from the Twitter space.
Elon has gone full doge 😂 pic.twitter.com/urQ6Q0R2tz
— Dan Held (@danheld) February 4, 2021
In their dedicated paper released earlier this week, Blockchain Research Lab stated that such social media publicity should attract more attention in the future. The paper read:
“While Elon Musk is likely to be an extreme example in terms of influence via social media, there is a huge number of comparatively less influential individuals, groups or companies who communicate their opinions on cryptocurrencies via social media.”