Dogecoin has been on a recovery trend lately. This is attributed to recent comments from Elon Musk, the ‘Father Doge’, which has seen prices rise. Musk, who has been a vocal supporter of the meme coin, is one of the main reasons behind the popularity and success the cryptocurrency enjoyed last year. Now, once again, the billionaire is also behind the recent increase in the price of the digital asset.
Dogecoin jumps 10%
Elon Musk recently spoke about inflation and naturally, as expected with the CEO of SpaceX, the discussion turned to cryptocurrencies. The billionaire had shared some thoughts on how to deal with inflation, which seems to be growing by the day. According to him, to combat inflation like this, one would need to own physical things instead of the dollar.
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These “physical things” that Musk was referring to were things like a house or shares in a company that makes good products, which is useful when inflation is high. However, when it comes to selling virtual things like cryptocurrencies, Musk disagreed that selling them was a good thing. He explained that he still owned bitcoin and was not going to “sell my Bitcoin, Ethereum or Doge.
As a general principle, for those seeking advice from this thread, it is generally better to own physical things like a house or shares in companies that you think are good commodities than dollars when inflation is high.
I still have and will not sell my Bitcoin, Ethereum or Doge fwiw.
— Elon Musk (@elonmusk) March 14, 2022
Following these comments, Dogecoin was quick to respond. Usually in the past when Musk talked about Doge it had caused a price spike and this time was no different. Shortly after, the price of Dogecoin quickly rose from $0.111 to $0.122. It was not long after the price corrected lower, but it continued to trade at a higher low after the drop.
DOGE rises after Musk’s comments | Source: DOGEUSD on TradingView.com
Inflation figures continue to rise in the United States, already reaching 7.9%. This has raised concerns among pundits who have called on the Fed to do something about rising inflation rates.
Elsewhere, cryptocurrencies continue to be a good hedge for inflation. With Bitcoin growing more than 100% year-over-year and altcoins like Ethereum posting higher numbers, these digital assets have given investors some much-needed respite from seeing the value of their wealth plummet.
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Dogecoin is still trading higher than yesterday as it landed at a higher low. However, at $0.113 each, the meme coin is a long way from its all-time high above $0.7, losing over 70% of its value since then. Investor sentiment remains heavily skewed towards selling, a direct reflection of how the digital asset has performed in the market of late.
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This post Dogecoin Spikes 10% After Elon Musk Reveals He’s Not Selling
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