One of the things that drives the prices of a particular coin is news and media. Depending on how you understand and react to the news, you either make profits or you are rekt. So, our world's richest man who recently made his crypto adoption known to everyone has been causing a bit of commotion in the crypto market. Few days ago, he updated his Twitter bio with the lone word "bitcoin". As expected, this gave a quick surge in the price of BTC on exchanges. Bitcoin rose from about $36k to almost $40k in less than no time and later retraced.
On Thursday, Elon Musk tweeted about the trending DOGEcoin and consequently, its price increased nearly 50% or more. So, we see how information plays a vital role in the crypto space. One should then position himself to getting the right information because it is not entirely about technical analysis. Both TA and FA are needed for a successful run in the cryptocurrency business. There's a common saying, "sell the news and buy the bottom.". Surround yourself with the right information and learn to act smartly. Very importantly, verify your information before reacting; don't go in blindly else you will be left bleeding.
On the other hand, I think Elon Musk will mislead some greedy and novice crypto investors and traders with his momentary DOGEcoin hype. DOGEcoin is among those cryptocurrencies referred to as "pump and dump" coins due to its tokenomics and it has no distinct use case. Also, looking at the supply of DOGEcoin, you'd agree with me that lots of dollars will be needed to invest in it for a sustainable price increase. For those blindly following this media hype of DOGEcoin, they might regret in the end while they big boys would have already cashed out.
One needs to apply wisdom when dealing with cryptocurrencies else losses will be recorded. Know the ones to buy for long-term and also know they ones to use for quick gains. Carry out your own research and not depending blindly on the opinions of others.
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