The price of Dogecoin went up again as of Thursday morning before slightly declining. The surge happened to coincide just some hours after Tesla owner and CEO Elon Musk posted about his support towards it on Twitter again. This added yet another layer to the unpredictable nature of the cryptocurrency that has taken the entire crypto markets by surprise this year.
The cryptocurrency surged as high as 0.40 USD (0.28 GBP) from the lows of 0.29 USD posted earlier as a result of the sell-off the previous day (Wednesday 19th March). The value of the cryptocurrency surged 16 percent to 42 cents, following the tweet by Elon Musk.
Musk took to Twitter to write, “How much is that Doge in the window?”; which was accompanied by a picture of the dog from the doge meme, on what appeared to be a dollar bill.
This move came right after the cryptocurrency market for Ethereum, Bitcoin, and Dogecoin took a plunge on Wednesday, after reclaiming a portion of those later that day. Bitcoin plummeted as low as 32,000 USD, and Ethereum dropped as low as 30 percent amidst the session.
Reports of a renewed clampdown in China were also seen as another contributing factor to the plummet in prices. The nation’s federal reserve bank issued an announcement on its WeChat restating that financial entities should not be dealing in cryptocurrencies or accepting them.
Apart from that, prices were still at huge risk since Musk also said last week that Tesla was turning back on its plans to accept Bitcoin as payment. He mentioned the environmental consequences of bitcoin mining being the reason behind the sudden change in decision.
Musk said that he still believed in cryptocurrencies, but Bitcoin’s energy usage was still a concern for him. Bitcoin mining, according to studies conducted at Cambridge, is responsible for 0.7 percent of the world’s electricity usage.