Crypto Markets Gain Nearly $100 Billion After Elon Musk’s Twitter Deal Boosts Dogecoin

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Amid a broader market rally, cryptocurrencies gained tens of billions in market value this week, fueled in part by a 40% gain for dogecoin due to Elon Musk, the world’s richest man and self-proclaimed “Dogefather,” who completed his takeover of Twitter.

Dogelon Mars cryptocurrency logo displayed on a phone screen and display of Dogecoin are seen… [+] in this illustration photo taken in Krakow, Poland on November 2, 2021. (Photo by Jakub Porzycki/NurPhoto via Getty Images)

NurPhoto via Getty Images Key Facts

The crypto market was worth $1.05 trillion Friday, according to CoinGecko’s tracker of more than 13,000 cryptocurrencies.

That’s an increase of nearly $100 billion since last Friday, crossing the $1 trillion barrier for the first time in six weeks on Wednesday.

Bitcoin remains by far the largest cryptocurrency with a market cap of $396 billion, according to Forbes’ digital asset tracker, and its jump from 7% to $20,639 accounted for most of the week’s gains.

But perhaps the most newsworthy was the ninth-largest coin by market capitalization, Dogecoin.

Dogecoin surged more than 40% to $0.085 in the past week, taking nearly all the gains since Wednesday as Musk’s takeover of Twitter became more certain.

Doge bulls believe Musk could integrate the coin into the social network, pointing to Musk’s texts with his brother in which the billionaire suggests verifying users by charging fees paid in dogecoin to tweet.

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$11.5 billion. That’s the market cap of dogecoin as of Friday, a larger market cap than American Airlines.

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Musk helped inspire the meteoric rise of dogecoin in 2021 amid the general meme trading mania, with the coin peaking at $0.69 last spring before plunging back to Earth after Musk called it a “buzz” while hosting Saturday Night Live. After an explosion in value in 2020 and 2021, the crypto market collapsed this year, losing about $2 trillion in market value and dropping bitcoin by 57% to date. Crypto’s losses in 2022 are much more than the similarly declining stock market, with the S&P 500 and tech-heavy Nasdaq falling 19% and 30% to date.

What to watch out for

The Federal Reserve’s interest rate decision is next week. If the Fed indicates it will continue its aggressive policy, risky assets such as crypto could “react badly,” said Marcus Sotiriou, an analyst at brokerage GlobalBlock. Hopes that policies will not become more aggressive have since helped markets recover from this year’s lows.

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Musk’s favorite cryptocurrency may be coming out of the blue thanks to the Twitter deal, but the stocks that hold most of his wealth have gone in the opposite direction. Tesla shares are down 8% since Oct. 4, when Musk’s intentions to go ahead with the Twitter deal became public, as Tesla investors worried about the company’s CEO, Musk, wanting more Tesla stock. had to sell to fuel his purchase and divert his attention from the electric car business.

Read further

Twitter story wags Dogecoin to 10% gain (Forbes)

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