Dogecoin (DOGE) price rallied 15 per cent to $0.1009 on Saturday, days after Tesla chief Elon Musk acquired Twitter and fired its CEO Parag Agrawal from his post.<\/p>\n
The rally helped the meme coin cover some of its losses from $0.2878 on October 31, 2021, to $0.1009 on October 29, 2022, Coinmarketcap data showed.<\/p>\n
It is not the first time Elon Musk\u2019s actions have fueled Dogecoin\u2019s price momentum. In June 2022, Musk was sued for $258 billion in damages for allegedly running a pyramid scheme to support Dogecoin.<\/p>\n
So, why have Elon Musk\u2019s actions influenced Dogecoin\u2019s price? We explore some of his comments and the corresponding price movements of Dogecoin.<\/p>\n
Effects Of Elon Musk\u2019s Comments On Dogecoin Price<\/strong><\/p>\n \u25cf Last year, Elon Musk announced that people could buy Tesla and Starlink merchandise using Dogecoin. It led to a 17 per cent jump in Dogecoin\u2019s price.<\/p>\n \u201cTesla will make some merch (merchandise) buyable with Doge & see how it goes,\u201d Musk Tweeted in January.<\/p>\n \u25cf But not all Musk comments resulted in Dogecoin\u2019s price appreciation. For example, in a US comedy show in May 2021, Musk said that Dogecoin was a \u201chustle\u201d for him. The comments led to a 35 per cent drop in Dogecoin price.<\/p>\n \u25cf In April 2021, Elon Musk tweeted that \u201cDoge Barking at the Moon\u201d. His post triggered a sharp rally in Dogecoin price, up by 20 per cent in a single day.<\/p>\n Musk also posted numerous other cryptic Tweets about Dogecoin, Bitcoin, etc., which led to price volatility of the cryptocurrencies.<\/p>\n For example, in July 2022, Tesla Inc., in a letter to its shareholders, disclosed that it sold almost 75 per cent of its Bitcoin holdings, worth $936 million. Tesla, however, didn\u2019t reveal its Dogecoin holdings.<\/p>\n Musk said that Tesla sold its Bitcoin at the time since it was concerned about the company\u2019s liquidity due to Covid-related shutdowns in China, The Verge reported.<\/p>\n \u201cI\u2019m getting a Shiba Inu #resistanceisfutile,\u201d Musk Tweeted in May 2021.<\/p>\n
<\/p>\n Working with Doge devs to improve system transaction efficiency. Potentially promising.<\/p>\n
Musk also said he worked closely with Dogecoin developers to make Dogecoin more efficient. \u201cWorking with Doge devs to improve system transaction efficiency. Potentially promising,\u201d Tweeted Musk in May 2014.<\/p>\n
\n\u2014 Elon Musk (@elonmusk) May 13, 2021<\/a><\/p><\/blockquote>\n