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Cryptocurrency market capitalization increased by tens of billions of dollars this week amid a broad market rally. This was partly fueled by Dogecoin's 40% rally after Elon Musk, the world's richest man and self-proclaimed “Dogefather,” completed the takeover of Twitter. .
important facts
The crypto market was worth $1.5 trillion on Friday, according to CoinGecko's 13,000+ crypto tracker.
That's an increase of almost $100 billion from last Friday, and it surpassed the $1 trillion threshold for the first time in six weeks on Wednesday.
According to , Bitcoin remains by far the largest cryptocurrency with a market capitalization of $396 billion. forbes' digital asset tracker, whose 7% rise to $20,639 drove much of this week's gains.
But perhaps the most newsworthy is Dogecoin, the ninth largest coin by market capitalization.
Dogecoin rose more than 40% to $0.085 last week, but almost all of the gains came since Wednesday, when Musk's acquisition of Twitter became more certain.
Dogecoin bulls believe Musk could incorporate the coin into social networks, with the billionaire proposing to authenticate users by charging a fee paid in Dogecoin to tweet. Musk points out texts with his younger brother.
big number
11.5 billion dollars. That's Dogecoin's market capitalization as of Friday, which is larger than American Airlines.
Main background
Musk helped fuel Dogecoin's meteoric rise in 2021 amid general meme trading mania. Dogecoin peaked at $0.69 last spring, but crashed after Musk called it a “hustle” during his host. saturday night live. The cryptocurrency market, which exploded in value in 2020 and 2021, has come crashing down this year, losing about $2 trillion in market value and sending Bitcoin down 57% since the beginning of the year. Cryptocurrencies' losses in 2022 were far greater than the stock market, which also fell, with the S&P 500 and tech-heavy Nasdaq down 19% and 30% year-to-date.
Points to note
The Fed's interest rate decision will be made next week. Marcus Sotiliou, an analyst at brokerage firm GlobalBlock, said risk assets such as cryptocurrencies could have a “negative reaction” if the Fed signals continued aggressive policy. Since then, expectations that policy will not be more aggressive have helped markets recover from this year's lows.
Contra
Musk's favorite cryptocurrency may have soared thanks to his deal with Twitter, but the stocks to which much of his net worth is tied up have gone in the opposite direction. Tesla shares have fallen 8% since Oct. 4, when Musk announced his intention to move forward with a deal with Twitter. That comes as Tesla investors worry that CEO Musk will need to sell more Tesla stock to raise money for purchases and divert attention from the electric business. vehicle company.
References
Dogecoin rises 10% on Twitter story (forbes)
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