Elon Musk's DOGE-themed Tweet Causes Canine Cryptocurrency Prices to Increase

Following Twitter CEO Elon Musk's posting of a meme featuring his dog Floki acting as the new Twitter CEO, traders are pushing all things Shiba Inu.

According to data, the price of DOGE has increased by 4.7% daily and by 3.0% in the hour following the tweet.

When Musk's takeover of Twitter came to an end on October 27, Agrawal was replaced as the company's CEO. Although the two were friendly when they initially met, as 2022 drew on, their relationship reportedly deteriorated as Musk became Twitter's largest shareholder. Agrawal no longer follows Musk on Twitter, but the former CEO does.

In December, it was reported that Musk had begun seeking for a new CEO of Twitter after losing an online poll on the matter.

“I will resign as CEO as soon as I find someone foolish enough to take the job! After that, I will just run the software & servers teams,”

Floki Up by Over 50%

Floki, which gets its name from Musk's dog, has increased 41% over the past day.

After the Floki Inu DAO, the organization that created the coin, passed a governance resolution to carry out a $100 million token burn, the price of Floki increased by approximately 100% in January.

Burning tokens makes sense since it reduces supply, which, assuming demand stays the same, increases the value of each token. This resembles a stock buy-back in the cryptocurrency space.

Does DOGE Plan to Hold a Dog Day at the Markets?

This isn't the first time DOGE has risen in response to a tweet about Elon Musk. The memecoin skyrocketed in late January following a Financial Times report claiming that Twitter is developing a method to allow cryptocurrency payments.

Shiba Inu (SHIB), another meme coin, and other disproportionate increases have traditionally been the first indication of a market selloff, according to a report published in December 2022 by blockchain analytics company Santiment.

Markets have started to emerge from the depths of the FTX-caused crypto winter during the past three months. By the middle of January, according to CoinDesk, Bitcoin has completely reversed the loss caused by the FTX. With several of these coins showing double- or triple-digit gains, the market rebound has also signaled the start of an altcoin season.

In the past three months, Bitcoin has increased by 34%, while SHIB is up 40%, BONK is up astoundingly, 533%, and Floki is up 242%.

The fact that DOGE is actually down 2% during this time, despite the other canine coins screaming at the moon (including today's rise), suggests that, assuming Santiment's theory is correct, we have not yet reached the stage of a market-wide sell-off.