Musk tweets on cryptocurrencies and Dogecoin leaps, Bitcoin retreats | Inquirer

Musk tweets on cryptocurrencies and Dogecoin leaps, Bitcoin retreats

/ 07:31 AM May 14, 2021

Bitcoin was heading on Friday for its worst week since February, while dogecoin leapt by a quarter, as the latest tweets on cryptocurrencies from Tesla boss Elon Musk sent the digital coins on a wild ride.

Bitcoin is down about 13% this week, and was last up 1.6% at $50,503. It has slumped over a fifth from its record of just under $65,000 hit last month.

Cryptocurrency markets have gyrated to Musk tweets for months, with his comments on dogecoin – a token started as a joke that has scant practical use – fueling a hundred-fold rally this year.


Musk knocked bitcoin this week after tweeting that Tesla would stop accepting it for payment owing to environmental concerns.

“Toppy markets (are) looking for 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.”



Dogecoin has climbed about 25% after Musk’s latest tweet, according to Coin Gecko, and was last at $0.52, down from its record $0.73 hit last week.

Musk tweets, dogecoin leaps and bitcoin retreats

Representations of virtual currency Bitcoin are placed on U.S. Dollar banknotes in this illustration taken May 26, 2020. REUTERS/Dado Ruvic/File Photo

“Working with Doge devs to improve 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 referring to efficiency in terms of energy, ease of use or suitability as a currency, said Mark Humphrey-Jenner, associate professor of finance at the University of New South Wales.

Dogecoin consumes 0.12 kilowatt hours of electricity per transaction compared with 707 for bitcoin, according to 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 total value of $68 billion, according to Coin Market Cap.

Few major companies accept Dogecoin for payment, and its supply is unlimited.

Related Articles

How to Convert Dogecoin to USD

The Bright Future of Cryptocurrency

In contrast, bitcoin’s gains this year have been fueled by growing mainstream adoption for payment, as well as a store of value given its limited supply.

“Dogecoin remains a lesson in greater fool theory,” said David Kimberley, analyst at investing app Free trade, which posits that buying overpriced assets can be profitable, so long as there is a “greater fool” to buy them.

(Reporting by Tom Wilson in London and Tom Westbrook in Singapore Additional reporting by Hyunjoo Jin in San FranciscoEditing by Tom Hogue, Shri Navaratnam and Frances Kerry)

Don't miss out on the latest news and information.
TAGS: crypto, dogecoin, Elon Musk, Tweets
For feedback, complaints, or inquiries, contact us.
Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.