[Bitcoin Now] Musk's Influence Remains Strong... Dogecoin Surges

Posted on Twitter to coincide with Coinbase listing... Dogecoin rises over 10%
Goldman Sachs: "Bitcoin is closer to copper, a risky asset, than gold"

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] Elon Musk, CEO of Tesla, demonstrated his continued influence in the cryptocurrency market. Dogecoin surged again following his tweet.

On the 2nd (local time), CEO Musk posted an image on Twitter showing a Dogecoin storm overwhelming the existing global financial system. The reason he posted about Dogecoin is that from the 3rd, Dogecoin trading will be available on Coinbase Pro, the professional investor trading platform of the U.S. cryptocurrency exchange Coinbase. According to the U.S. economic media CNBC, Coinbase announced that it will soon support Dogecoin trading for individual investors as well.

As a result, Dogecoin surged. According to the domestic cryptocurrency exchange Upbit, as of 7:42 a.m. on the 3rd, Dogecoin recorded 486 KRW, up 11.21% compared to the previous day. Following a 14.70% increase the day before, it even rose to 525 KRW on the same day.

However, CEO Musk’s actions faced restrictions. According to the U.S. Wall Street Journal (WSJ) on the 1st, the U.S. Securities and Exchange Commission (SEC) reportedly warned Tesla last year regarding Musk’s social media activities that cause market confusion. Previously, in 2018, Musk was sued by the SEC for securities fraud after tweeting that he was considering taking Tesla private. Subsequently, he avoided severe penalties by agreeing with the SEC to have Tesla review his tweets before posting.

Meanwhile, an analysis suggested that Bitcoin is closer to risky assets like copper rather than gold. Jeff Currie, head of commodity research at the major U.S. investment bank Goldman Sachs, explained in an interview with CNBC, “Analyzing the correlation between Bitcoin and copper or Bitcoin and risk asset preference indicators shows that Bitcoin has acted as a risk asset over the past decade,” adding, “It is closer to copper, a risky asset, than to gold, a safe haven asset.” In fact, recently, the close relationship between tech stocks and Bitcoin has shown that the cryptocurrency market is influencing the stock market.

At the same time on the same day, Bitcoin recorded 43.61 million KRW, up 0.96% from the previous day. Since rebounding from the 40 million KRW range on the 30th of last month, there has been little movement.