Elon Musk tries to save Dogecoin but wrong way

Tram Ho

Returning from Germany after the opening of Tesla’s electric car factory, billionaire Elon Musk did all sorts of things but still could not help Dogecoin regain lost capitalization. Even Dogecoin is suffering the same fate when the virtual currency market goes down because of a series of bad news.

The West announced that China cracked down on virtual currencies

China banned the supply and issuance of virtual currencies in 2013 and 2017, but this information was repeated on May 19. By May 21, at the conclusion of a meeting of the Committee for Sustainable Finance and Development, Chinese officials said they would closely monitor cryptocurrency mining and trading.

Both of these announcements were spread by Western media outlets creating a severe bearish crisis for Bitcoin. On May 19, the price of Bitcoin had a time of bottoming at $32,000 compared to a peak of $45,000 the day before.

Bitcoin’s slight rally continued to be blocked on May 21 when the value fell below $35,000 from $40,000 the day before.

The US and Hong Kong supervise virtual currency transactions

After China, the US will also tighten virtual currency activities. On May 20, the Ministry of Finance of this country proposed that transactions over 10,000 USD should be reported to the US Internal Revenue Service (IRS).

Previously, the IRS itself also proposed in April that virtual currency transactions should be taxed as property and must be registered.

Elon Musk cố cứu Dogecoin nhưng sai cách - Ảnh 1.

The entire virtual currency market used to be in the red for the whole week because of the bad news that kept coming.

After the US proposal, it was the turn of the Hong Kong special zone (China) to propose a proposal to tighten virtual currency trading activities. Specifically, Financial Services and the Hong Kong Treasury Department proposed to have a licensing mechanism for virtual currency exchanges that want to operate in Hong Kong.

In addition, this special zone also proposes that only professional investors are eligible to trade virtual currencies, ie those with a portfolio of more than 8 million HKD (more than 1 million USD).

Among the active cryptocurrency exchanges in the world, Bitfinex and Huobi are currently located in Hong Kong.

Accordingly, Huobi has stopped trading activities with new users in certain countries and regions. This exchange also stopped accepting virtual currency transactions from factories in China to avoid the consequences of Beijing’s strong crackdown on virtual currency mining activities.

How does Elon Musk save?

In a row of bad news coming within a week, Elon Musk had to tweet continuously to save the cryptocurrency market. First, on Monday (February 17), Elon Musk said that Tesla has not sold a single Bitcoin yet.

Until the price drop on May 19, Elon Musk tweeted the Tesla symbol with a diamond hand (Diamond Hand), implying that this electric car company would keep Bitcoin from selling.

In the next price drop on May 21, Elon Musk emphasized that he has and will not sell any Dogecoin at all. After that, Elon Musk continued to have tweets replying to fans about his views with fiat money and virtual currency, he supported virtual currency.

Between these large tweets are two images alluding to Dogecoin, but neither can pull this satirical virtual currency back to its former value.

Elon Musk cố cứu Dogecoin nhưng sai cách - Ảnh 2.
Dogecoin is still recovering slowly despite the efforts of billionaire Tesla operator.

Finally, Elon Musk also understood what he had to do to save Dogecoin, which was to save Bitcoin. The latest tweet on May 25, directly referring to the greening of Bitcoin mining pools, is the premise for the virtual currency market to be active again, indirectly pulling Dogecoin up.

However, Dogecoin is currently still at the resistance area of ​​$ 0.34 with a capitalization of $ 44 billion, far from the peak of $ 0.73 with a capitalization of $ 90 billion made earlier this May.

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Source : Genk