Dogecoin (DOGE) price has experienced a slight increase, reviving the hopes of its supporters during a volatile period. Early today, the meme-inspired digital currency saw a 6% increase.
This recent increase in the price of Dogecoin, no matter how small, can be attributed to the continued support of billionaire tech entrepreneur Elon Musk, who has frequently supported Dogecoin in recent months. Musk’s tweets are known to have a significant impact on the Dogecoin market value, and he has referred to it as the “people’s crypto.”
Some analysts believe that Musk’s support for Dogecoin has helped it gain more popularity and interest among the masses, leading to more investment and acceptance among both individual investors and institutional players.
Billionaire Musk Boosts Dogecoin Price
It appears that the meme-inspired cryptocurrency Dogecoin has seen an increase following Musk’s latest tweet. In response to a user’s tweet about coming to the US to watch SpaceX’s upcoming Starship launch, Musk replied, “Okay, but it will cost 3 Doge.”
Immediately after Musk’s tweet, Dogecoin’s value increased significantly, and on an hourly chart, the price rose to $0.0785. However, at the time of writing, the price had slightly dropped and is currently trading at $0.076 on CoinMarketCap.
Fed Hike Drags Prices Down
The Federal Open Market Committee (FOMC) implemented its expected decision on Wednesday night, raising the main interest rate by half a point, and major cryptocurrencies saw negative trends. DOGE showed a 2.63% decrease in the last 24 hours and is trading at $0.073, Bitcoin (BTC) fell below $28,000, and Ethereum (ETH) dropped 3.31% to trade below $1,800.
Against the interest rate hike, Musk wasted no time criticizing the Federal Reserve’s decision, expressing concerns about massive deposit outflows from banks and the difficulty of managing ongoing economic crises.
“The first driver of depositor flight is moving money from low-interest savings accounts to high-interest money market (Treasury Bill) accounts. This foolish rate hike will worsen depositor flight,” he said.
The Federal Reserve’s move to raise the main interest rate highlights its concerns about ongoing inflation pressures. In a statement, Fed Chairman Jerome Powell emphasized the central bank’s commitment to bringing inflation back to the targeted 2% rate.
However, the Fed also acknowledged the potential consequences of the last banking crisis, stating that it could lead to tighter credit access for customers and businesses. As a result, the Fed anticipates that these factors could restrict economic growth, job creation, and inflation.
