Dogecoin News
Dogecoin (DOGE) Surges in Price by 27% in Anticipation of Elon Musk Acquiring Twitter (TWTR)
Dogecoin (DOGE) has recently surged in price in anticipation of Elon Musk acquiring Twitter (TWTR). The move wouldn't surprise many, as Musk is well-known for his love for the meme coin.
Interestingly, the tech billionaire's aerospace company SpaceX and automotive company Tesla (TSLA) also accept Dogecoin as a payment option for merchandise.
Musk & Dogecoin: A Match Made in Crypto Heaven?
Musk has tweeted about DOGE many times in the past, helping prop up Dogecoin's price right after, which may or may not be his intention, but his followers do lap up any words he speaks. For example, Musk's appearance on SNL early last year, where he mentioned DOGE, actually marked the top of the coin at about $0.75.
The meme coin was trading at $0.059 on Tuesday and since then has increased 34% in value as it went on to hit $0.079 on Wednesday as Musk changed his Twitter bio to “Chief Twit.”
Since then, the price of DOGE has lost some of its gains as it trades at $0.075 at the time of writing. The coin was down over 89% from its all-time high in May 2021. With a market cap of $10.3 billion, Dogecoin is the 10th largest cryptocurrency.
On Wednesday, Musk also tweeted a video of himself entering the Twitter headquarters in San Francisco, carrying a sink in his hands. This comes days ahead of the deadline to close the $44 billion buyout deal.
Musk agreed to buy Twitter for $54.20 a share in April, but a couple of months later, he announced that he was terminating the deal over concerns about the number of spam-bot accounts. The company rejected the claim and responded with a lawsuit against Musk in an attempt to force the deal to go through.
The court has given both sides until October 28 to work out details; if they fail, there will be a trial in November.
If the Twitter acquisition goes through, it would be a positive for Dogecoin, and the cryptocurrency price may rally even harder. A known supporter of Shiba Inu-themed cryptocurrency, his involvement would undoubtedly increase its visibility further. This could lead to more people buying and using Dogecoin, which in turn would drive up its price.
Conclusion
Of course, nothing is certain at this point, and it remains to be seen if Musk will actually go through with the acquisition. However, if he does, it could be a big boost for Dogecoin, both in terms of price and adoption.
Besides the Musk-induced bullish momentum, steadily rising long-term holders and reduced miner reserves also contribute to DOGE's positive price action.
Over 2.8 million addresses have been holding DOGE for more than a year, which has doubled this year. Miner reserves, meanwhile, which indicate the total amount of coins held in miner-related wallets that have not been sold, is at 4.39 billion DOGE, down almost 65% over the past 12 years to levels not seen since December 2013, according to data from IntoTheBlock.
