Tesla CEO Elon Musk wrote in a tweet on June 13 that if “miners confirm reasonable (about 50%) clean energy use” does make cryptocurrency prices rise again, then the electric car manufacturer “Allowing Bitcoin transactions will be restored.” One day after the tweet was posted, the value of Bitcoin rose by more than 10%. According to CoinDesk data, on the morning of June 15th, the world’s largest currency transaction price exceeded US$40,000 (about 2.9 million rupees). Since Musk’s tweet on Sunday, its value has increased by nearly US$5,000 (about 36 lakh rupees).
Dogecoin was originally a memetic currency, but in the past few months it has received strong support from the billionaire tycoon and its value has increased. But this positive trend in the cryptocurrency market does not guarantee that it will soon see the bull market that began at the beginning of this year again. At best, the price appreciation of Bitcoin and other digital currencies in the past two days is likely to be temporary.
The relationship between Musk and Bitcoin is unstable. Initially, he expressed his support for Bitcoin on social media. In February of this year, Tesla revealed that it had purchased $1.5 billion (approximately Rs 10,990 crore) worth of Bitcoin. Subsequently, the electric car company said it would accept cryptocurrency for payment. By April, Bitcoin had reached an all-time high of nearly US$65,000 (approximately 4.73 million rupees), which had soared by more than 450% in just six months.
However, in early May, Musk tweeted a Tesla statement saying that the company was suspending Bitcoin payments because of the rapid increase in the use of fossil fuels in mining and transactions. This sudden announcement shocked many investors, who wanted to know if Musk was changing his stance on cryptocurrencies.
Coupled with China’s crackdown on cryptocurrency transactions, the market has experienced huge volatility, and large digital currencies such as Bitcoin have plummeted. At some point in May, Bitcoin was trading at approximately US$30,000 (2,180,000 rupees), but it has been fluctuating throughout the year.
However, the billionaire tycoon has repeatedly stated that he supports cryptocurrencies and believes that they may become the future currencies of the world.
However, so far this year, the price trend of Dogecoin in India is still unbalanced. After soaring to a record high of US$0.74 (approximately 54 rupees) on May 8th, it plummeted to US$0.22 (approximately 54 rupees) on May 19th. (16 rupees) by June 15th, the token has recovered part of its losses, and the transaction price is 0.32 US dollars (approximately 23 rupees). There are calls for Dogecoin to reach 1 USD (about 73 rupees) by the end of this year, but it is difficult to say whether this can be achieved.
Popular brands such as Snickers Chocolate and Slim Jim Beef Jerky have also supported meme currency in the past.
-Snickers (@SNCKERS) April 19, 2021
We make jars a reality because you want them to happen and send them to friends in the community that welcomes us.We made a CHARITY NFT to show #DOGARMY And their mission #DoOnlyGoodEveryday Next, we will launch a jar for charity in May. pic.twitter.com/HyImxXDIl1
—Slim Jim? ? ? ? (@SlimJim) April 20, 2021
At the end of April, when Dogecoin fell below $30, billionaire entrepreneur Mark Cuban also supported the memetic currency.
Because Doge is a token that people actually use for transactions.We pass many others @BitPay But people spend their governor, which means more companies will start to accept it. The biggest obstacle to its growth is that you cannot spend the Doge you bought on Robinhood https://t.co/TrhT9pYkcb
— Mark Cuban (@mcuban) April 26, 2021
Speaking of Bitcoin, billionaire entrepreneur Tim Draper (Tim Draper) said that he is still optimistic that this cryptocurrency will reach a staggering US$250,000 (approximately 1.8 million rupees) by the end of next year or early 2023.
— Tim Draper (@TimDraper) June 7, 2021
However, investment bank JPMorgan Chase warned investors in a recent report that the price of Bitcoin will fall further. The bank’s analysts expect an upcoming bear market.