Bitcoin was heading on Friday for its worst week since February, while dogecoin leapt by 1 / 4 , because the latest tweets on cryptocurrencies from Tesla boss Elon Musk sent the digital coins on a wild ride.
Bitcoin is down about 13% in the week and was last up 1.6% at $50,503. it’s slumped over a fifth from its record of slightly below $65,000 hit last month.
Cryptocurrency markets have gyrated to Musk’s tweets for months, together with his comments on dogecoin – a token started as a joke that has scant practical use – fuelling a hundred-fold rally this year.
“Toppy markets (are) trying to find an excuse to breathe,” said Ben Sebley of crypto firm BCB Group. “Long money doesn’t care about Elon’s tweets. Fast money trades around that stuff now.”
$68 BILLION MARKET CAP
Dogecoin has climbed about 25% after Musk’s latest tweet, consistent with CoinGecko, and was last at $0.52, down from its record $0.73 hit last week.
“Working with Doge devs to enhance system transaction efficiency. Potentially promising,” Musk wrote on Thursday. He called it a “hustle” last week, knocking its price.
It was unclear if Musk was pertaining to efficiency in terms of energy, simple use, or suitability as a currency, said Mark Humphery-Jenner, professor of finance at the University of latest South Wales.
Dogecoin consumes 0.12-kilowatt hours of electricity per transaction compared with 707 for bitcoin, consistent with data center provider TRG.
The token, whose logo features a Shiba Inu dog, has surged this year to become the fourth-largest cryptocurrency with a complete value of $68 billion, consistent with CoinMarketCap.
Few major companies accept Dogecoin for payment, and its supply is unlimited.
In contrast, bitcoin’s gains this year are fuelled by growing mainstream adoption for payment, also as a store useful given its limited supply. read more
“Dogecoin remains a lesson in greater fool theory,” said David Kimberley, an analyst at investing app Freetrade, which posits that purchasing overpriced assets are often profitable, goodbye as there’s a “greater fool” to shop for them.