The crypto market has enjoyed a steady start to the week after a weekend of turbulence. It saw the staging of Bitcoin 2021, which was billed as “the largest crypto event in history,” but it was most notable for a stage invader who ripped off his clothes and shouted about Dogecoin. The Elon Musk-backed coin is currently trading at $0.37 (£0.26), which is down on the $0.43 (£0.30) levels seen last week, but still an improvement since it crashed to $0.24 (£0.17) last month after reaching an all-time high of $0.72 (£0.51).
It comes after the Tesla CEO asked his 54 million followers “Do you want Tesla to accept Doge?” which was followed up with another tweet confirming he is “working with Dogecoin developers to improve system transaction efficiency”.
Popular YouTube finance channel Upshod believes it could go ahead.
In a video, the analyst said: “If Tesla starts to accumulate Dogecoin now, that would be good for them. And while they start buying you will see the price go up.
“That’s what happens when you get a big buyer, the price goes up.
“Then once they announce they are accepting Dogecoin for cars, the price is going to go up more.
“I see this being the catalyst for proving Dogecoin for use as a currency, a lot of people will scoff at that and say ‘Elon just wants to get rich’.
“But that’s not the case, this is the Tesla corporation, which has to listen to its shareholders and has to make profits.”
The YouTuber said if Tesla did move to accept Dogecoin, it could see the price soar once more.
He added: “This isn’t just about buying some Dogecoin and seeing if it will do something, it’s much more than that.
“This is a real investment that is telling the world that Dogecoin is a legitimate currency, that’s my view.
“Where does it go from there? Once the announcement is made the Dogecoin price will go up, which will attract more and more buyers.
“We can’t say that Bitcoin’s rise from $34,000 (£24,000) to $54,000 (£38,100) was based on Tesla alone, but I certainly think it had a lot to do with it.
“So we can imagine that, if Dogecoin was around $0.50 at the time, it could easily go $0.60 to $0.65, just based on that alone.”
He added that the “huge catalyst” could even “get up to the $0.70 level” that it was sat on last month.
Mr Musk famously announced plans to put a “literal Dogecoin on the literal Moon,” and hopes to launch a mission both financed by and carrying the cryptocurrency.
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Now cryptocurrency exchange Bitmex says it is planning its own Moon mission – to put Bitcoin there first.
Mr Musk has commented on the plans on Twitter, stating: “A new space race has begun.”
Britain’s Financial Conduct Authority (FCA) has previously warned investors of the risks that come with investing in cryptocurrency.
They said: “If consumers invest, they should be prepared to lose all their money.
“Some investments advertising high returns from crypto assets may not be subject to regulation beyond anti-money laundering.
“Significant price volatility, combined with the difficulties valuing [Bitcoin] reliably, place consumers at a high risk of losses.”
Express.co.uk does not give financial advice. The journalists who worked on this article do not own Dogecoin or Bitcoin.