Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why Dogecoin Jumped 13% Today

By Travis Hoium - Oct 5, 2021 at 1:14PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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

What happened 

Cryptocurrency Dogecoin ( DOGE 0.00% ) 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. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Dogecoin Stock Quote
Dogecoin
DOGE
$0.17 (0.00%) $0.00
Bitcoin Stock Quote
Bitcoin
BTC
$48,600.85 (-1.79%) $-883.37
Ethereum Stock Quote
Ethereum
ETH
$4,083.91 (-2.84%) $-119.31
Coinbase Global, Inc. Stock Quote
Coinbase Global, Inc.
COIN
$261.49 (-1.56%) $-4.16
Solana Stock Quote
Solana
SOL
$184.76 (-6.06%) $-11.93
Shiba Inu Stock Quote
Shiba Inu
SHIB
$0.00 (-2.48%) $0.00

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

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
624%
 
S&P 500 Returns
140%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/06/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.