On May 11, Tesla CEO Musk took to social media with a poll titled “Do you want Tesla to accept dogcoin payments? ” in a poll. As of writing, the percentage of people who agreed to let Tesla accept dogcoin payments was 78.6%, while those who did not support it was 21.4%, and the total number of votes had exceeded 440,000. As a result of the news, dogcoin rose 15% in half an hour and the price has risen to about $0.54.
So far this year, the price of dogcoin has soared a staggering 12,000%, with a 20,000% increase over the past full year, far surpassing the rise of cryptocurrency number one Bitcoin. Its market cap once exceeded $90 billion. Dogcoin’s current round of explosive fire cannot be separated from Tesla’s CEO Musk, and by now, the trend of dogcoin seems to have become something that Musk can decide with a single tweet.
Back on the night of May 8, Musk hosted a variety show, Saturday Night Live, a comedy sketch variety show that airs live every Saturday night. During the show, Musk talked about doge and said “dogcoin is the future of cryptocurrency,” but later in the host’s flirtatious interview, he said dogcoin “is a scam. Subsequently, dogcoin plummeted on the news.
According to CoinGecko, half an hour before the show went on air, dogcoin was trading at about $0.718142. Shortly after the show started, the dogcoin took a short dip, and then the drop expanded all the way to a near 40% plunge to a low of $0.446146.
Between one up and one down, Musk’s one sentence seems to determine the rise and fall of dogcoin, and the reason behind it deserves every investor’s attention. The FireCoin Research Society reminds that before making any investment decision, investors should first fully understand the relevant assets and invest carefully based on their own judgment, rather than being blinded by market sentiment and causing unnecessary losses.
Firecoin Research Society believes that, as Google Trends’ keyword heat for Dogecoin shows, Dogecoin’s heat is significantly higher than before 2021, with the highest heat in the United States, Turkey, and Canada. We can see that Dogecoin is a relatively cheap and hot crypto asset in terms of unit price. However, at the same time, the market should also note that the digital asset market is relatively small compared to the traditional financial market, and the addition of a large amount of funds from the traditional market will inevitably cause the price of the coin to rise sharply, resulting in a sharp price spike as much as possible. However, digital asset prices can skyrocket and will likely plummet, and even some digital assets may go to zero in value in extreme cases, so investors should be fully cognizant of the investment risks of dog coins when operating.
BTC shocks sideways during the day, volume relatively depressed
According to data from the Firecoin trading platform, BTC fell slightly in the morning to a low of 54452.95USDT. The competition between the long and short sides was fierce during the day and continued to oscillate sideways, with a small overall increase, currently up to 56194.01USDT, with relatively depressed volume. Hourly level, after last night’s sustained decline, the oscillation range was formed at the low 55300 line. On a daily level, BTC is down sharply today. The evening continues to focus on the change in volume as well as the breakout above 56000 and the support below 55200.
According to the data from the Firecoin trading platform, ETH fell slightly in the morning to a low of 3774.25 USDT, then rose slightly during the day to a current high of 4083.53 USDT, with relatively depressed volume. On the one-hour level, the intra-day decline picked up and basically returned to the position where yesterday’s drop was 1/2. On the daily level, ETH fell slightly today, basically reversing 1/2 of yesterday’s gain. keep watching the volume change in the evening as well as the breakout above 4100 and the support below 3850.
On the contract side, the big data of the Firecoin contract shows that the BTC contract position rose slightly, the contract volume dropped slightly, and the contract market was inactive. The basis difference of the delivery contract increased slightly.
ETH contract positions are relatively stable, contract volume is slightly decreasing, and the contract market is inactive. The basis difference of the delivery contract increased slightly.
USDT is quoted at $6.57 on the OTC market of FireCoin Global Station.
According to FireCoin Research data monitoring, today’s DeFi total locked-in volume (TVL) was relatively stable at $127.35 billion, while the real locked-in volume was relatively stable at $91.85 billion. Among them, SushiSwap was down by a large margin of 12.15%. Total Defi trading volume rose slightly today to $8.26 billion. Among them, Tokenlon rose more, reaching 21.28%.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/musks-tweets-set-the-rise-and-fall-investors-should-be-wary-of-being-fooled-by-market-sentiment/
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