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Why Dogecoin Jumped 13% Today

By Travis Hoium – Updated Oct 5, 2021 at 4:52PM

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Elon Musk tweeted a picture, which is good news for Dogecoin.

What happened 

Cryptocurrency Dogecoin (DOGE 0.18%) is up 12.6% in the last 24 hours, according to Coinbase, after Elon Musk tweeted a picture of a Shiba Inu puppy. Yes, that's the news that's driving this meme cryptocurrency higher. 

So what

Elon Musk is arguably the most influential person in the Dogecoin ecosystem, and small comments or tweets can impact the price of Dogecoin and its spinoff Shiba Inu with no other news. Meme investors, who have flooded the crypto market, seem to read Musk's tweets to look for some meaning about the future of a cryptocurrency whose mascot is simply a Shiba Inu. 

Shiba Inu dog.

Image source: Getty Images.

Outside of the Musk tweet, there's no real news in the cryptocurrency industry. Prices are mixed today, with bigger names like Bitcoin and Ethereum up 2.4% and 1.6%, respectively, over the last 24 hours. But digital coins like Solana are down 4.9%, so the biggest move is related to cyrptocurrencies with dogs as their mascot. 

Now what

This sounds like a joke, but Dogecoin specifically will move sharply higher or lower based simply on a few tweets. At the end of the day, these are speculative investors pushing a speculative cryptocurrency higher, and nothing more. 

Remember that the volatility and memes that are driving Dogecoin higher today could turn course tomorrow. But in cryptocurrency, volatility seems to be the name of the game, no matter what you're invested in. 

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.

Stocks Mentioned

Dogecoin Stock Quote
Dogecoin
DOGE
$0.10 (0.18%) $0.00
Bitcoin Stock Quote
Bitcoin
BTC
$16,994.34 (0.09%) $16.05
Ethereum Stock Quote
Ethereum
ETH
$1,272.38 (-0.69%) $-8.79
Coinbase Global Stock Quote
Coinbase Global
COIN
$47.67 (5.30%) $2.40
Solana Stock Quote
Solana
SOL
$13.59 (0.03%) $0.00
Shiba Inu Stock Quote
Shiba Inu
SHIB
$0.00 (0.25%) $0.00

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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