Elon Musk defended his crypto born as a joke amid the collapse of Bitcoin and other digital currencies

Dogecoin REUTERS/Dado Ruvic/Illustration
Dogecoin REUTERS/Dado Ruvic/Illustration

Bitcoin BTC, Ethereum and other major cryptocurrencies have rallied in the last 24 hours following the devastating cryptocurrency crash that wiped out a fortune from the combined cryptocurrency market.

In a Forbes note, it was noted that “Bitcoin has added about 10% since falling to lows not seen in more than a year, climbing back above $30,000.” At 11 a.m. Argentine time it was trading at USD 30,454.

Meanwhile, Ethereum and “its biggest rivals have added between 15% and 25% each”.

Against this backdrop, Forbes noted, “Tesla TSLA billionaire -0.8% and longtime dogecoin supporter Elon Musk has once again signaled his support for the meme-based bitcoin rival, helping its price bounce around 20%, just weeks after mocking legendary investor Warren Buffett for attacking bitcoin. The Dogecoin was trading at USD 0.091 at 11 in Argentina.

“”[Dogecoin] has potential as a currency,” Musk posted on Twitter, responding to dogecoin co-creator Billy Markus, who had written: “the reason I like dogecoin is because he knows it’s stupid.”

“I like that something stupid can also have utility and be successful,” added Markus.

Elon Musk REUTERS/Patrick Pleul
Elon Musk REUTERS/Patrick Pleul

“The price of dogecoin has risen in recent weeks following the news of Musk’s $44 billion bid to buy Twitter, triggering on expectations that Musk could move to integrate dogecoin into Twitter, potentially using it for payments on Twitter. platform”. This morning, another tweet from Musk sparked market jitters, claiming that he would put the purchase of the powerful social network on hold, sending its share value down 25%.

Regardless, Forbes recalled, Dogecoin has fallen nearly 90% since hitting “an all-time high of over 70 cents amid a rally fueled by Musk and high-profile investors last year.”

Last month, Musk said he would target cryptocurrency scams and bots if he could buy Twitter, and also suggested that the Twitter Blue subscription fee could be paid in dogecoin. Now, the market is watching every tweet from the owner of Tesla and SpaceX with concern, to know what his next move will be.

The dramatic fall of cryptocurrencies caused not only millionaire losses to the great powers of the markets but also a wave of mistrust on investors of all scales that, so far, does not seem to have an end. In the midst of a negative moment for all financial markets, impacted by the effects of the Russian invasion of Ukraine, the rise in commodities and a boost on global inflation, all risk assets were impacted by the rate hike arranged by the Federal Reserve. And when it came to risky investments, crypto was at the top of the list.

While technology stocks, high-yield bonds and other high-volatility assets were also hit in their prices, the cryptocurrencies went further and left their promoters between uncertainty and panic. According to The Economist, “the crypto infrastructure is broken” and the crisis observed in recent days bears the stamp of the old financial collapses of yesteryear. The magnitude of the crisis is still difficult to quantify.


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