Dogecoin Soared, Elon Musk Bought 9.2% of Twitter

Elon Musk bought a 9.2 percent stake in Twitter (a $2,8 billion investment), making him the company’s top stakeholder, according to a Securities and Exchange Commission 13G filing filed Monday, boosting Dogecoin (DOGE) to an almost two-month high. Elon Musk, Tesla’s co-founder and CEO, appears to have made the vast purchase in response to a recent Twitter poll. People indicated dissatisfaction with the site.

A functional democracy requires free expression. Do you think Twitter follows this rule to the letter? The results of this poll will have far-reaching implications. According to Musk’s vote, more than 70% of people said no. Despite his large following on the social media platform, Musk has been an outspoken critic of Twitter. He’s toyed with the idea of creating his platform. He now owns four times as many shares as Twitter co-founder Jack Dorsey. Many speculate that Musk would use this step to push through a plan to bring Twitter closer to his beliefs, maybe leading to a purchase.

Affect on Dogecoin

This purchase suggests Musk has a personal interest in changing Twitter’s policies as he sees fit; however, it could also interpret as the CEO acting by the wishes of his followers. Aside from free speech, many of Musk’s supporters are Dogecoin enthusiasts.

The CEO recently posted a video on the coin, primarily parody, and implied that the meme coin’s price would rise enormously and exceed all larger coins. Elon Musk is a staunch backer of DOGE, and his well-attended events have become a deciding factor in DOGE’s pricing. As a result, people anticipate that Elon Musk will press the social media site to accept Dogecoin as a payment option and integrate the coin further.

DOGE jumped 8.36 percent the next day after the announcement, from $0.1431 to $0.155. After a four-month bear market, the meme coin’s market capitalization increased by $1.5 billion in less than an hour.

A few traders expected DOGE’s price to rise to $0.17-$0.18 the day before the buy was announced after overcoming local trend resistance with bulls defending the $0.13 zone. If the bulls can fuel above the 200-day SMA price, the meme coin might experience a significant uptrend in the following days. Recent Musk-related events may catalyze a rally, depending on future developments and announcements. Because the meme currency has a strong link with larger coins, Bitcoin’s price movement will be crucial for future action.