Elon Musk’s Positive Crypto Tweet Fuels Temporary Dogecoin (DOGE) Surge
Tesla CEO Elon Musk has made it clear via a tweet during the early hours of March 14, 2022, that he’s still holding on to his bitcoin (BTC), ether (ETH), and dogecoin (DOGE) stash, as he firmly believes that crypto is one of the best investment vehicles to hedge against hyperinflation.
Elon Musk Not Selling his Cryptos
The annual inflation rate in the United States surged to 7.9 percent in February 2022, the highest increase the country has witnessed since January 1982, and financial experts have predicted that the inflation rate may remain elevated throughout this year due to the war in Ukraine and other factors like supply constraints, strong demand, and labor shortages.
In a tweet on March 14, highly controversial Twitter CEO, Elon Musk, asked his more than 77 million followers on the microblogging site what their thoughts were concerning the probable inflation rate in the United States over the next few years.
In response to Musk’s tweet, MicroStrategy CEO, Michael Saylor reiterated that he sees a future where consumer and asset inflation will continue to reach new all-time highs, triggering serious capital flights from inflation-prone instruments like cash, value stocks, and others, to a scarce property like bitcoin.
“USD consumer inflation will continue near all-time highs, and asset inflation will run at double the rate of consumer inflation. Weaker currencies will collapse, and the flight of capital from cash, debt, & value stocks to scarce property like #bitcoin will intensify,” predicted Saylor.
Dogecoin Sees 10 Percent Bounce
Further consolidating Saylor’s prediction Musk advised his followers to latch onto physical investments like real estate or the stocks of stable companies, instead of keeping the US dollar, adding that he himself is still holding onto his bitcoin, ether, and dogecoin and doesn’t plan to liquidate his portfolio anytime soon.
“As a general principle, for those looking for advice from this thread, it is generally better to own physical things like a home or stock in companies you think make good products than dollars when inflation is high. I still own & won’t sell my Bitcoin, Ethereum or Doge fwiw,” declared Musk.
As expected, Musk’s tweet triggered a sudden pump in the price of dogecoin (DOGE), pushing the meme coin from around $0.111 at 4:10 UTC to as high as $0.122 by 4:17 UTC. However, the digital asset has since lost steam, trading around $0.1156 at the time of writing this report, with bitcoin and ether hovering around the $39,234 and $2,604 price regions respectively.
It’s worth noting that Musk has a strong affinity for dogecoin and the 50-year-old multi-billionaire never misses a chance to hype his favorite altcoin.
Last May, crypto.news reported that SpaceX, Elon Musk’s rocket manufacturing firm had accepted dogecoin (DOGE) as payment from Canada’s Geometric Energy Corporation (GEC) to launch the Doge-1 satellite to the moon before the end of Q1 2022.
“SpaceX launching satellite Doge-1 to the moon next year. Mission paid for in DOGE. 1st crypto in space. 1st meme in space. To the moooonnn!!,” tweeted Musk at the time.
