Generally speaking, cryptocurrencies react to bad news, good news and rumours like the stock market does.
After Twitter announced it had accepted Elon Musk’s offer, Dogecoin went up 30 percent as rumours swirled that Twitter might sooner or later integrate it as a payment option before going down again.
Dogecoin (DOGE) was created as a joke – a ‘memecoin’ in crypto jargon, but it quickly gained traction partly because of the cult-like following it garnered on social media and also because Musk regularly talks (and tweets) about it.
He also made it a payment option for Tesla merch, praising Dogecoin’s low transaction fees and fast transaction times.
Dogecoin was worth about $0.12 on April 25, it jumped to $0.17 after the announcement and now it has retreated a little bit, trading about $0.15 at the time of writing.
For stock and crypto investors with a Musk-focused portfolio, this bit of good news may partially alleviate the pain they’ve felt after Tesla stock price dropped significantly.