Dogecoin (DOGE) recently found itself embroiled in the latest developments in the financial world. As the digital currency followed the broader market’s downtrend, news broke that the US Securities and Exchange Commission (SEC) had taken legal action against Binance and Coinbase.
This unexpected turn of events was noticed by none other than Elon Musk, the influential entrepreneur and self-proclaimed “Dogefather”.
With Dogecoin’s value taking a hit and the SEC’s lawsuit causing ripples across the crypto community, Musk couldn’t resist responding to the unfolding situation.
— Pierre Rochard (@BitcoinPierre) June 6, 2023
Elon Musk won Dogecoin again
When news of the SEC’s lawsuit against Coinbase broke, Pierre Rochard, vice president of research at Riot Platforms, on Twitter stressed the importance of refocusing the stock market’s attention on Bitcoin. Rochard’s proposal is consistent with his belief in Bitcoin’s resilience and long-term potential as the leading cryptocurrency.
Jack Dorsey, the founder of Twitter and a well-known proponent of Bitcoin, supported Rochard’s point of view, also weighed in on the issue. Dorsey expressed their support to prioritize Bitcoin amid regulatory challenges, emphasizing its robustness and importance in the crypto landscape.
DOGE market cap currently at $9.4 billion. Chart: TradingView.com
Musk, known for his interest in cryptocurrencies and past endorsements of Dogecoin, wasted no time responding to Dorsey’s pro-Bitcoin stance. With his characteristic brevity and wit, Musk took to Twitter and tweeted a terse yet attention-grabbing statement.
In his tweethe simply wrote “DOGE ftw” and used the abbreviation “ftw” to denote “for the profit.”
Dogecoin’s reaction to regulatory pressure
As news of the SEC’s lawsuit against Binance, a leading cryptocurrency exchange, spread, Dogecoin experienced a decline in line with the broader market. However, market expectations that Musk’s tweets could quickly boost the token’s price have not been met in the current scenario.
Despite its strong association with Musk’s endorsements, Dogecoin is currently trading at $0.067,970 at CoinGeckoreflecting a 5.0% decline over the past week.
While Dogecoin has not been named among the tokens considered securities by the SEC, the prevailing regulatory pressure and negative sentiment in the industry have contributed to its generally low price. The lack of clarity and uncertainty surrounding the regulatory landscape has dampened market sentiment, affecting the value of various cryptocurrencies, including Dogecoin.
While the SEC has not designated Dogecoin as a security, the effects of regulatory pressure and market trends have kept the altcoin’s price relatively low. As the industry navigates this challenging period, the future of Dogecoin remains uncertain, and investors eagerly await any developments or further recommendations from Musk that could affect its price trajectory.
Featured image from REUTERS/Dado Ruvic/Illustration