Where most prices today largely trade flat, we find a major outlier within the top 10 cryptocurrencies: dogecoin (DOGE)! The meme crypto is up more than 20% since this morning. And that seems to have everything to do with the news that a deal is likely to be struck between Elon Musk and Twitter today!
BREAKING: Twitter and Elon Musk reach deal on buyout, to be announced shortly – WSJ
— Breaking911 (@Breaking911) April 25, 2022
Dogecoin price skyrockets
This morning was still readable that a deal between Musk and social media platform Twitter would be announced this week. But it seems to be going a lot faster now. The Wall Street Journal now lets know that this can still happen today:
“The two sides worked through the night to negotiate a deal that would be valued at $54.20 a share, or $44 billion, the sources said. Assuming there are no last-minute issues, the deal is expected to be announced after the market closes on Monday, if not sooner.”
Dogecoin investors seem to want to anticipate the actual confirmation of the news. Since the beginning of the afternoon, DOGE has been in the plus by no less than 23%!
Why is this news having such an effect on dogecoin?
The DOGE price is rising fast because Elon Musk is also known as a real Dogecoin fan. the ‘Dogefather’ also left hint may want to add the cryptocurrency as a payment method on Twitter. Given the sheer number of people who use Twitter, this would of course be a great boost ensure the adoption of Dogecoin.
There is of course no guarantee that he will actually do this. Moreover, DOGE is a very volatile cryptocurrency and so one should be very careful. For example, the current situation could turn out to be a classic example of ‘Buy the rumour, sell the news.’ While it’s still rumours, the price is rising. But once the news is confirmed, the price could eventually go through a sharp correction.
Update: The news has now been confirmed.
Twitter’s board agrees to $44bn takeover by Elon Musk, who has promised to “unlock” the social media giant’s potential https://t.co/ObcThxnJlX
— BBC Breaking News (@BBCBreaking) April 25, 2022
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