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This Elon Musk tweet caused Dogecoin to spike in price

Why did Dogecoin spike suddenly?

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Musical guest Miley Cyrus, host Elon Musk, and Cecily Strong during promos in Studio 8H for “Saturday Night Live.”

Musical guest Miley Cyrus, left, host Elon Musk, and Cecily Strong during promos for “Saturday Night Live” in Studio 8H on Thursday, May 6, 2021.

Rosalind O’Connor, NBC via AP

Tesla CEO Elon Musk caused the price of Dogecoin to rise in price because of a simple tweet.

What did Elon Musk say about Dogecoin?

Musk said Thursday that he is working with Dogecoin, which was a potential hint that he is working with Dogecoin to make sure it could be used to buy Tesla vehicles, according to MarketWatch.

  • “Working with Doge devs to improve system transaction efficiency,” Musk tweeted. “Potentially promising.”

Per MarketWatch, the price of Dogecoin jumped 36% in the immediate aftermath of the tweet.

Why did Dogecoin drop Thursday?

Interestingly, Dogecoin dropped in value Thursday because of a similar scenario. Tesla CEO Elon Musk said Wednesday night that Tesla would no longer accept Bitcoin as a form of payment for Tesla.

  • Musk said in a tweet: “We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”
  • “Cryptocurrency is a good idea ... but this cannot come at great cost to the environment.”

Per CNBC, Dogecoin dropped to below $0.40 per dogecoin, which was valued at $0.70 per coin earlier in May.

Will Tesla allow Dogecoin?

That said, Musk’s announcement of Bitcoin came after Musk hinted that he might want Dogecoin to be used for purchases. As I explained for the Deseret News, Musk shared a poll that asked if his fans would use Dogecoin to buy Tesla vehicles.

More than 3.9 million votes were placed in the poll. About 78.2% of those votes said “Yes.”