Elon Musk warns traders against “betting the farm” on his favorite cryptocurrency Dogecoin
- Elon Musk told the Wall Street Journal that he remains a fan of Dogecoin but does not advise anyone “to bet the farm” on DOGE.
- Musk explains that Dogecoin is his favorite cryptocurrency because it has the best humor and a dog.
- The Tesla CEO’s advice was accompanied by a 2.5% price decline in DOGE on the 24-hour timeframe.
Elon Musk, the Tesla CEO and Dogecoin proponent, expressed his preference for DOGE in an interview with The Wall Street Journal while advising traders not to risk everything on the meme coin. Musk is tackling a $258 million lawsuit that accuses him of running a pyramid scheme to support the cryptocurrency Dogecoin.
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Musk warns traders against risking their capital on his favorite crypto: Dogecoin
The billionaire CEO of Tesla told the Wall Street Journal that Dogecoin is his favorite cryptocurrency. Musk explained that he does not advise traders to “bet the farm on DOGE” – another way of saying that traders should not risk their whole purse.
The Tesla CEO recently asked a US Court judge to throw out the $258 million lawsuit that accuses Musk of running a pyramid scheme to support Dogecoin. Musk’s comments and his expression of support for his favorite cryptocurrency DOGE in the form of tweets, memes and statements throughout 2022 resulted in a rally in the meme coin’s price.
Typically, meme coin rallies are fueled by hype and speculation surrounding an asset. Dogecoin price rallied in response to Musk’s tweets and comments on several occasions in 2022.
In February 2021, DOGE price rallied 37% in a 24-hour period, climbing to $0.0849 in response to Musk’s tweets supporting the meme coin. Similarly, last month when Musk changed Twitter’s logo from the blue bird to the Shiba Inu dog, DOGE price climbed 27% overnight.
These instances support a thesis of DOGE price rallies fueled by Musk’s comments.
Dogecoin price nosedives in response to Musk’s comments
Elon Musk’s comments on Dogecoin were accompanied by a price decline in the meme coin, which dropped 2.5% in a 24-hour timeframe to $0.0712. DOGE price is 90% below its all-time high of $0.7315, and the meme coin yielded nearly 10% losses for holders over the past month.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
