Dogecoin is said to “attract more and more buyers” as the price hike was predicted | City & Business | Finances
The crypto market got off to a stable start to the week after a turbulent weekend. It saw the staging of Bitcoin 2021 billed as “the greatest crypto event in history,” but it was most notable for a stage intruder who ripped his clothes off and yelled about Dogecoin. The Elon Musk-backed coin is currently trading at $ 0.37 (£ 0.26), which is below last week’s $ 0.43 (£ 0.30) level but is still an improvement since it did crashed to $ 0.24 (£ 0.17) last month after hitting an all-time high of $ 0.72 (£ 0.51).
It comes after the Tesla CEO asked his 54 million followers, “Would you like Tesla to accept Doge?” This was followed by another tweet confirming that he “is working with the Dogecoin developers to make system transactions more efficient improve”.
Popular YouTube financial channel Upshod believes it could go on.
In a video, the analyst said, “If Tesla starts piling up Dogecoin now, it would be good for them. And as they start buying, you will see the price go up.
“That’s what happens when you get a big buyer, the price goes up.
“Then when they announce that they are accepting Dogecoin for cars, the price will continue to rise.
“I see this as a catalyst for proving Dogecoin as a currency. A lot of people will scoff at this and say, ‘Elon just wants to get rich’.
“But that is not the case, this is the Tesla Group, which has to listen to its shareholders and make profits.”
The YouTuber said that if Tesla accepts Dogecoin, the price could go up again.
He added, “It’s not just about buying Dogecoin and seeing if it works, it’s about a lot more.
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“This is a real investment telling the world that Dogecoin is a legitimate currency, that’s my opinion.
“Where does it go next? Once the announcement is made, the Dogecoin price will go up, which will attract more and more buyers.
“We can’t say that Bitcoin’s rise from $ 34,000 (£ 24,000) to $ 54,000 (£ 38,100) was due to Tesla alone, but I think it certainly had a lot to do with it.
“So we can imagine that if Dogecoin was around $ 0.50 at the time, it could easily go up $ 0.60 to $ 0.65 based on that alone.”
He added that the “giant catalyst” could even “hit the $ 0.70 level” it was sitting at last month.
Mr Musk famously announced plans to put a “literal Dogecoin on the literal moon” and hopes to launch a mission that will be both funded and carried by the cryptocurrency.
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Now the cryptocurrency exchange Bitmex is saying it is planning its own moon mission – putting Bitcoin first.
Commenting on the plans, Mr Musk said: “A new race into space has begun.”
The UK’s Financial Conduct Authority (FCA) has previously warned investors about the risks associated with investing in cryptocurrencies.
They said, “When consumers invest, they should be ready to lose all of their money.
“Some investments that advertise high returns on crypto assets may not be subject to any regulation beyond anti-money laundering.
“Significant price volatility combined with the difficulty of valuation [Bitcoin] Expose consumers to a high risk of loss. ”
Express.co.uk does not provide financial advice. The journalists who worked on this article do not own Dogecoin or Bitcoin.