Elon Musk’s Latest Tweet Sparks a Surge in Dogecoin (DOGE) Value
The price of Dogecoin (DOGE) saw a sudden surge of 3% following a tweet from Elon Musk, the founder of Tesla and owner of Twitter. Musk simply responded “Doges” to a question about his preference for cats or dogs, causing a sharp increase in the price of the cryptocurrency. However, the pump was short-lived as the price deflated just as rapidly. Within three hours of the tweet, the price of Dogecoin dropped by over 5%, eradicating the earlier gains. This serves as a cautionary tale, suggesting that trading Dogecoin based on Musk’s tweets or news may not be profitable. Trading bots, programmed to seize any mention of Dogecoin by Musk, are able to exploit these trends and can often outperform human traders. Therefore, attempting to trade based on Musk’s tweets may not be a reliable strategy.
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