Synopsis: This article provides light on the viral video shared by Elon Musk on Dogecoins. Elon Musk is known for creating stock and crypto movements. This video failed to create any upward momentum as the overall market condition is weak at the current moment.
In a recent post on Twitter, Elon Musk shared a funny AI-generated video that went viral. Elon Musk is a huge supporter of Dogecoin and reposted the clip from a parody account, called Sir Doge of the Coin.
The video showed an AI version of Elon Musk dressed in black tuxedo. Shiba Inu dog is also present in the video along with him. The video recreates a scene from ‘The Godfather’, where Elon Musk jokes to be Dogefather and refuses to share his private key.
Huge buzz in social media
This video received wide attention from people. It gained over 18 million views along with thousands of likes and comments. This indicates the connection between Elon Musk, internet culture and the crypto community.
Earlier, the circulation of such posts and videos boosted the price movements of Dogecoins. This trend is called the ‘Musk Effect.’
Elon Musk’s support for Dogecoin
Elon Musk supported Dogecoin, through memes and jokes, for years. One of his previous actions involved replacing the Twitter symbol with the Shibu Inu icon.
This move caused Dogecoin’s price to move up by 30%. When the logo was removed, the price dropped again. This shows how swift the market reacts to Elon Musk’s actions.
Another incident occurred during Saturday Night in 2021. Dogecoin reached an all-time high of $0.73 before this show. During the broadcast, Elon Musk called it a hustle as the price fell sharply by 30% to 40%.
Low crypto prices
The latest viral video did not boost the prices. Dogecoin is trading around $0.093, indicating a decline of over 3%.
At the same time, Bitcoin, the world’s largest cryptocurrency, is also experiencing weaknesses. Instead of rising, Bitcoin remained under pressure and reflected broader slowdown in the crypto market. This shows that even a strong social media profile is not good enough to boost the overall crypto market, when the market is weak.
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Weak Market Momentum
Dogecoin fell by 40% from its high price and more than 87% from its all-time peak. The technical indicators like MACD and RSI suggest that the dogecoin will move down further.
Similarly, Bitcoin’s lack of strong upward movement indicates that investor confidence is currently low across the crypto market.
Impact of Global Uncertainty
Two of the main reasons are global economic and political uncertainty. The markets are not stable due to the current global economic and political uncertainty. When the markets are unstable, the investors tend to avoid risky assets like cryptocurrencies.
This ‘risk-off’ mood affects both major coins like Bitcoin and memecoins like Dogecoin. Hence, the prices are less even when there is viral news or major news events.
Conclusion
Even though Elon Musk’s video on Dogecoin entertained millions and millions of people. This can be understood by the views in likes, shares and comments. It did not lead to a price surge. Two popular crypto currencies like Bitcoin and Dogecoin are trading at a lower price, the overall market is weak.
This signals a new knowledge from the crypto market. Elon Musk’s influence is great. When he shares his views on a company stock, the stock price tends to move high irrespective of the market conditions. Whereas the crypto prices do not tend to react in the similar manner as the economic conditions and investor sentiment are crucial in determining the price movements.
Written by Parvati Anilkumar
