The $DOGE rally is seemingly being driven by the interesting interplay between Elon Musk and the memecoin.
The price of Dogecoin ($DOGE) has surged nearly 6.8% after Elon Musk’s rebranding move on July 24. Twitter is reportedly in the process of rebranding to X, followed by the changes of the brand image and Musk’s update on Twitter’s bio description with an additional “D.”
Dogecoin Surges after Twitter’s Rebranding
The new move has fueled speculations that Elon Musk will adopt Dogecoin as part of the rebranding strategy. However, Dogecoin’s association to X remains a mystery within the crypto community.
Twitter temporarily underwent logo changes in the past. In early April 2023, a wave of excitement swept through Twitter as news broke that the platform integrated the Doge logo to its user interface. Users discovered that the iconic Doge logo appeared on the Twitter page.
This change drove the price of Dogecoin upward with an impressive 15% surge in a short time.
In addition to Dogecoin, altcoins with an “X” in their names have also increased sharply. One notable token, named “AI-X,” even used a logo identical to SpaceX. The coin skyrocketed by 10% following the news. Another token, cleverly named “Deus X” saw a staggering spike of 2,600%.
Bitcoin, on the other hand, is moving sideways. The largest cryptocurrency is hovering at $29,000, an approximately 3% decrease in the last 24 hours.
Elon Musk’s continuous support has undoubtedly played a crucial role in boosting Dogecoin’s popularity and giving it a unique position in the crypto space. Despite the ups and downs, Musk’s backing has proven to be a saving grace for the memecoin on multiple occasions.
The Tesla CEO has gone beyond tweets and actively promoted the use of Dogecoin by accepting payments in this cryptocurrency at his companies.
As early as 2022, Tesla started embracing Dogecoin at its charging stations, allowing customers to make transactions using the memecoin. This move demonstrated Musk’s strong endorsement of Dogecoin as a viable payment method.
It doesn’t end with Tesla; Musk’s other ventures are also set to join the Dogecoin bandwagon. Both SpaceX and Starlink have been announced as upcoming supporters of Dogecoin
Musk’s Twitter rebranding and Dogecoin might steal the early show, but the week’s focus is on the FOMC meeting on July 27. There is a growing sense of unease among investors regarding the possibility of the Federal Reserve raising interest rates this month. Recent Fed meetings have given clear signals that interest rates are upward.
The Fed’s inflation target stands at 2%, and despite some positive reports on the Consumer Price Index (CPI) and the Producer Price Index (PPI) lately, the central bank has not shown any inclination to be more lenient with interest rates.
Apart from the FOMC meeting, all eyes are on other key economic indicators, including the U.S. Gross Domestic Product (GDP) report scheduled for July 27 and the U.S. Core Personal Consumption Expenditures (PCE) data set to be released on July 28.
The GDP report will provide valuable insights into the overall health and performance of the U.S. economy while the PCE data is a key metric to gauge inflation trends and make critical monetary policy decisions.
Investors closely monitor the market and seem to be leaning towards the scenario where the Federal Reserve will opt for a 0.25% rate hike.
Such a move could have implications for the cryptocurrency market, and many are speculating on its potential impact on Bitcoin’s price. However, opinions are divided, and uncertainties persist about the extent of BTC’s response to the rate increase.
Regardless, the Fed is near the end of its ability to raise rates. Banks have gone bust, and the global economy is falling apart.