Musk’s indirect pump of Dogecoin; Bitcoin’s turnaround after stocks

Bitcoin has gained 4.1% in the past 24 hours, reaching $40.6K. Ethereum rose even more strongly, up 5.3% to $3000. Other altcoins from the top 10 rose from 2.5% (XRP) to 25% (Dogecoin). The total capitalisation of the crypto market, according to CoinMarketCap, increased 3.9% overnight to $1.87 trillion. The Bitcoin Dominance Index added another 0.1 percentage point, to 41.3%.

The cryptocurrency Fear and Greed Index rose 4 points to 27 by Tuesday and moved into “fear” status.

Bitcoin updated to mid-March lows around $38,200 in the first half of Monday. BTC subsequently rebounded and strengthened gains in the US session along with the reversal of US stock indices.

Dogecoin soared 25% and returned to the top 10 cryptocurrencies on the back of news of Twitter’s purchase of the social network by Elon Musk. DOGE is Musk’s favourite coin for payments, and the Tesla founder has previously indicated that he intends to have it used as payment for purchases on Twitter.

Dogecoin co-founder Billy Markus said that a bridge between Dogecoin and Ethereum would open new opportunities for holders of this cryptocurrency and strengthen DOGE’s position in the ecosystem.

The bitcoin buying strategy has proved highly successful, MicroStrategy CEO Michael Saylor said. As of April 14, MicroStrategy remains the largest publicly traded company in terms of bitcoin investments, with assets of 129,200 BTC purchased for $3.97 billion at an average price of $30,700, MicroStrategy noted in its 2021 annual financial report.

Hedge fund SkyBridge Capital, founded by former US politician Anthony Scaramucci, plans to move most of its assets under management into cryptocurrency as it sees the prospect of “huge” growth in the sector.

The Central African Republic has become the first country in Africa to recognise bitcoin as a legitimate means of payment. Sang Lee, a co-founder of cryptocurrency financial services provider VegaX Holdings, said that institutions dealing with traditional finance and banks have already fallen far behind due to the rapid development of the crypto industry.

The FxPro Analyst Team