NewsPrice Analysis

Why did Elon Musk Bet on Bitcoin Yet being a Dogecoin Proponent!

Author: Sohrab Khawas

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    Story Highlights
    • Elon Musk who publicly supports a meme coin ‘Dogecoin’, announced Bitcoin purchase worth $1.5 billion by Tesla Motors

    • The bitcoin acquisition was done well before but announced at the time when the market focus was on Ethereum and Dogecoin

    Tesla Holds Bitcoin above Dogecoin!

    The year 2020 was pretty huge for the cryptocurrencies as it received mainstream attention and also adoption. Many expected the Bitcoin price rally will be much bigger than in 2020 that appeared a factual figure since the start. 

    Bitcoin attained the highest ever position in history which rallied the entire crypto space to the new highs. Many crypto assets broke the above resistance barriers and formed new ATH every new day. One such coin which amazed the crypto masses with its 800% surge was Dogecoin.

    This is the coin loved by the CEO of Tesla Motors, Elon Musk. He frequently supports the asset which leads to a considerable surge in DOGE price. Currently, following a similar trend, Elon Musk repeatedly attempted to pump the price with a series of tweet.

    Being such a gigantic supporter of DOGE, he never ever announced the purchase of Dogecoin rather announced the purchase of bitcoin worth $1.5 billion. As the news rolled out, the Bitcoin price spike like never before, registering the highest evergreen candle in history.

    Why did it do so!

    Dogecoin had gained immense attention in the recent days with massive growth. On the other hand, world’s second most preferred crypto Ethereum price also pumped hard to hit the levels above $1800. Likewise, many other tokens in the past 10 days surged massively as a result Bitcoin maintain a narrow trend.

    With the growing popularity, a popular crypto tracking website Coinmarketcap displayed the DOGE price in the homepage in a seperate section. As the bitcoin regianed the popularity, the platform reported people are looking at Bitcoin more than Doge.

    One of the prominent reasons, why Tesla announced Bitcoin purchase in an SEC filing nearly a month after the purchase might be due to drag the attention back to bitcoin. As the market sentiments were flown towards the altcoins marking a strong Altcoin Season, specially Ethereum.

    As the Tesla share price and Bitcoin price both surge with some positive news as said by an analysts loomdart on Tech, possibilities of pumping both the asset price cannot be ruled out. 

    Therefore, now it would be very interesting to know the bitcoin price rally if many more institutions jump in following Tesla’s purchase. Moreover, whether the institutions will still hold when the Bitcoin price rally hits $50K or just close their positions.

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