The market remains volatile, so far we can only dream of cryptocurrencies stability. The forecasts for a quiet weekend did not come true.
Leading analysts have argued that the market and bitcoin will remain green. But the leading cryptocurrency dropped by 12%, ETH and BNB fell by about the same percentage. Some altcoins dropped even more.
On the eve of the weekend, experts tried to guess how long Elon Musk’s favorite coin, Dogecoin (DOGE), will rise. The dynamics of DOGE more and more betray the manipulation of the market, which is carried out by the most famous entrepreneur in the world. For over two years now, Musk has been pumping Dogecoin by mentioning the coin on his Twitter account.
In April 2019, DOGE was in the third ten in terms of capitalization. But each of Musk’s verbal interventions caused an increase of tens of percent. As a result, DOGE is now in sixth place and is ahead of such powerful and functional cryptocurrencies as Polkadot (DOT) and Cardano (ADA). A new DOGE pumping happened on April 15, when Musk tweeted a picture with the caption “Doge Barking at the Moon”. Thus, the super-entrepreneur repeated his prediction made on April 1st, April Fools’ Day, when he stated that DOGE would fly to the moon as a joke. On April 16, Dogecoin was up more than 80%, and in just a week, the coin increased by more than 300%.
Musk’s cheeky manipulation could provoke a reaction from the US authorities. A post appeared on Twitter, citing an unnamed source, that the US Treasury is ready to accuse several financial institutions of money laundering using cryptocurrencies:
– U.S. TREASURY TO CHARGE SEVERAL FINANCIAL INSTITUTIONS FOR MONEY LAUNDERING USING CRYPTOCURRENCIES –SOURCES.
The news was published in the popular account FXHedge (over 133K followers). FXHedge writes all tweets in caps, so this was not a pretense of sensation. However, the news went viral, and markets crashed, including Dogecoin.
Musk’s manipulations may be explained not by his wish to make money on Dogecoin. Analysts suggest that the super-entrepreneur is thus testing the crypto market for its resistance to external disturbances, with the aim of the possible use of cryptocurrencies in business. While the market remains extremely volatile, Tesla, Musk’s company, has already invested $1.5 billion in bitcoin. Musk himself distanced from this decision, although it looks really suspicious.
However, it is possible that the leak from the US Treasury is fake and, like the manipulation of Dogecoin, serves the purpose of stopping the growth of Binance Coin (BNB). It was on April 16 that the new burning of BNB tokens took place. 1.09 million BNB worth almost $600 million was burned. After the burning, BNB always rises sharply, but not this time. However, it was BNB that recovered from the collapse faster and rose higher than ETH and BTC.