Dogecoin is showing signs of recovery lately. This is attributed to recent comments from Elon Musk, the ‘Dogefather’, that has seen prices spike. Musk, who is a strong supporter for the meme currency, was one of the main reasons that cryptocurrency saw such a boom in popularity. This time, Musk is again behind the sudden rise in price for digital assets.
Dogecoin jumps to 10%
Elon Musk spoke recently about inflation. Naturally, because he is the SpaceX CEO and the conversation veered to cryptocurrency. He shared his insights on how to combat inflation which is growing every day. He stated that physical items are better than the dollar to combat inflation.
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These “physical things” that Musk referred to were things like a home or stock in a company that makes good products, which is useful when inflation is high. Musk disagreed that it was profitable to sell virtual goods like cryptocurrency. He explained that he still owned bitcoin and wasn’t going to “sell my Bitcoin, Ethereum, or Doge.
It is better to hold physical assets, such as stocks or homes, in companies that you feel make high-quality products, rather than buying dollars during inflation.
I still own & won’t sell my Bitcoin, Ethereum or Doge fwiw.
— Elon Musk (@elonmusk) March 14, 2022
Dogecoin quickly responded to these comments. In the past Musk’s talk about Doge has usually led to an increase in price. This time it was no exception. The price of Dogecoin rose quickly, from $0.111 up to $0.122. Although the price did not fall much, it traded at a lower level after that dip.
DoGE rises following Musk's remarks | Source: DOGEUSD on TradingView.com
The US is seeing inflation numbers rise, with 7.9% reported already. These concerns have raised concern among experts, who called upon the Fed to take action against rising inflation rates.
The use of cryptocurrencies as a hedge against inflation is not limited to these regions. Investors have had a relief from seeing their wealth fall, thanks to Bitcoin’s over-the-year growth and altcoins such as Ethereum reporting higher numbers.
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Dogecoin trades higher today than yesterday, as it reached a lower low. The $0.113 price per coin of the meme currency is still a far cry from $0.7, but it has lost more than 70% in value over that time. Investor sentiment remains heavily skewed towards sell, a direct reflection of the digital asset’s performance in the market in recent times.
Featured image taken from Binance Academy. Chart by TradingView.com