Musk is a big shot in the cryptocurrency circle. He can shake up the market by changing his profile picture. Previously, he changed his profile picture to Shiba Inu, and Dogecoin immediately soared by 30%. This "Musk effect" is amazing!
This time he changed his profile picture to a chainsaw head, and the market was stunned. Everyone was confused and had all kinds of guesses.
On social media, the discussion was originally heated, but the emotions dropped from boiling point to lukewarm water like a roller coaster, and the increase dropped from 72% to 34%. It is obvious that investors are increasingly unwilling to buy into Musk's tricks, and the "Musk effect" is obviously not as effective as before.
In terms of supervision, the cryptocurrency market is already in a mess, and Musk's move is even more troublesome. The US Securities and Exchange Commission has been keeping an eye on him for a long time, to see if his nonsense on Twitter will mess up the market. I still remember that last year he said "Dogecoin is a scam", which directly smashed the price of the coin by 25%. This time he changed his controversial avatar, and there was another storm.
Look at the data on the chain, it's terrible. When the big holders of Dogecoin saw this, they sold out in 24 hours. 120 million DOGE, converted into US dollars, is 4.7 million, all of which went into the pockets of the exchange, and the net inflow directly soared by 300%.
Let's talk about the macro economy. The US dollar has shrunk sharply, and Dogecoin is under great pressure. The Federal Reserve will shrink its balance sheet by 95 billion US dollars every month in the first quarter of 2025. In this environment, the volatility of Dogecoin will directly explode, up to 98%! High-risk assets were sold off so badly.
There is also the special Dogecoin on the SOL chain - Con an ending with BQt. Trump is the "strongest dog on the surface" who is strongly supported. He has a star halo, and the community is very lively and the consensus is very strong.
Although the market is a little sluggish now, the bull market is about to start. If you are still confused, welcome to communicate in the comment area!