Tesla ditches Bitcoin as payment but may accept Dogecoin instead


  • Dogecoin price plunged by over 25% in the past 24 hours, reaching a low of $0.38.
  • DOGE fell in tandem with the rest of the crypto market following Elon Musk's announcement that Tesla is suspending vehicle purchases using Bitcoin.
  • The meme-coin could be awaiting a recovery if Tesla decides to accept DOGE as payment instead. 

Dogecoin price seems to be driven by Elon Musk. His appearance on "Saturday Night Live" disappointed investors, leading to a sell-off. Now, Musk could ditch Bitcoin and allow Tesla and SpaceX to accept payments in DOGE instead. 

Tesla halts Bitcoin payments 

Elon Musk has been pumping and dumping DOGE prices for over the past few months. Indeed, his recent appearance on "Saturday Night Live" served as a "sell the news" even for many investors. Dogecoin dropped by almost 50% since then to hit a low of $0.38.

The top cryptocurrencies by market capitalization also experienced a steep correction after Musk announced on Twitter that Tesla would no longer accept Bitcoin as payment for its vehicles. The billionaire entrepreneur cited effects on the environment due to fossil fuels for BTC mining and transactions.

Even though Tesla has ditched Bitcoin as payment, it is also not looking to sell any BTC on its balance sheet. It only plans to use the leading cryptocurrency as a medium of exchange once mining transitions to more sustainable energy. Musk said: 

We are also looking at other cryptocurrencies that use less than 1% of Bitcoin/s energy/transaction. 

Interestingly enough, Musk posted a poll on Twitter asking his audience whether or not Tesla should accept Dogecoin as a form of payment. The move coincides with SpaceX's decision to enable DOGE payments for a mission to the moon in 2022. 

On-chain analyst Willy Woo pointed out:

Elon asks the community whether DOGE (proof of work coin, secured by energy) should be accepted by Tesla, and in the very next tweet announces Tesla is no longer accepting BTC due to energy reasons. Tell us what's really going on.

Dogecoin price on the spotlight

Speculation mounts around Dogecoin since Tesla could soon accept this cryptocurrency as a form of payment instead of Bitcoin. While the news may be bullish, DOGE price seems to be trading within a descending parallel channel on its 4-hour chart. 

Dogecoin price must hold above the channel's lower boundary and the 200 four-hour moving average at $0.35 to keep speculators optimistic. 

Failing to do so could see the meme-coin drop by another 30% to 46% toward the 127.2% or 141.4% Fibonacci retracement levels. These crucial areas of support sit at $0.24 and $0.18, respectively.  

DOGE/USDt 4-hour chart

DOGE/USDt 4-hour chart

On the flip side, slicing through the channel's upper boundary and the 100 four-hour moving average at $0.47 may signify that Dogecoin price is poised to recover. 

If DOGE manages to regain $0.47 as support, it would have to break through the 50 four-hour moving average at $0.56 to be able to march toward new all-time highs. It seems like the bullish scenario would depend on whether or not Tesla decides to accept Dogecoin as payment for its products. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Bitcoin continues to range higher, but altcoins suffer

Bitcoin price has been on a tear lately, but Ethereum and Ripple have failed to perform as fear plagues the cryptocurrency markets. As a result, altcoins are down in the dumps with their dull rallies.

More Bitcoin News

MATIC price eyes 22% advance after dYdX lists Polygon

MATIC price has seen a massive bull rally over the past week. The recent listing of MATIC-USD perpetual on the dYdX platform and other developments might push Polygon on another leg-up.

More Polygon News

SafeMoon price awaits 20% bounce after SAFEMOON surges on Dogecoin SpaceX involvement

SafeMoon price has broken out of a parallel channel that has sealed the asset in consolidation since May 25. The rise in SAFEMOON has been propelled by CEO John Karony after he revealed a significant involvement in the cryptocurrency space.

More SafeMoon News

Dogecoin positions itself for rally that may never come

Dogecoin price appears to be bullish and shows signs of a potential new uptrend. However, this upswing needs confirmation, which will arrive after DOGE produces a decisive close at a critical resistance level.

More Dogecoin News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP