A new tweet from Elon Musk seems to have contributed to the increase in the prices of Dogecoin and Shiba Inu. Recent falls in the price of Bitcoin have weighed on that of altcoins such as Ether and Cardano.
The price of the pioneering cryptocurrency recently dropped by 8.8% to around USD 31,800 per unit. However, it has seen a 13.7% rebound in sales volume, reaching USD 39 million.
Enthusiasts and supporters of the cryptocurrency express their support for the recent announcements by the Salvadoran government. President Nayib Bukele informed citizens that the adoption of the cryptocurrency would go into effect on September 7th. To do this, they are preparing a new electronic wallet that will work on mobile devices.
A bonus of USD 30 for users of the digital wallet will accompany the measure. That will allow all those with less experience in using the cryptocurrency to become familiar with it.
Bitcoin Falls in Price and Major Altcoins Accompany It
Major altcoins on the market have also felt the effect of the falling price of Bitcoin. For that reason, some of them have recently suffered quite steep declines.
The most relevant cases are Ether (ETH), Binance Coin (BNB), Cardano (ADA), XRP, Polkadot (DOT), Solana (SOL), THETA, and VeChain (VET). The prices of these altcoins have fallen by between 4% and 10% in 24 hours.
Dogecoin and Shiba Inu Survive the Storm
However, the cases of Dogecoin (DOGE) and Shiba Inu (SHIB) are the most prominent amid the decline of crypto assets. These meme cryptocurrencies are among the few crypto assets that have made small profits.
Both cryptocurrencies have been experiencing increases close to 5% in the last 24 hours. Many blame this increase on the “Elon Musk effect,” the eccentric CEO of Tesla and SpaceX. He posted a new tweet where he said that everyone would know the Shiba Inu dog as Floki.
Although the message does not directly mention either of the two cryptocurrencies, the reaction of users and enthusiasts was evident in the markets. Trading volumes for both tokens rebounded following an increase in purchase orders.
Influence of Bitcoin in the Cryptocurrency Market
The price of Bitcoin plummeted when Elon Musk announced that Tesla would no longer accept Bitcoin as payment for its electric cars. He argued that cryptocurrency mining is harming the environment due to CO2 emissions. Altcoins accompanied the pioneering cryptocurrency during the collapse of this market.
Comments from influential figures can affect the price of Bitcoin both positively and negatively. On one occasion, the CEO of Tesla spoke positively about the cryptocurrency, which drove its price up.
Bitcoin has proven that it can bounce back from its worst all-time lows, which is why many continue to rely on it. For example, the president of El Salvador supports its use as a method of exchange in the economy through a new law. Other Latin American countries, such as Paraguay, Panama, Honduras, Guatemala, and Costa Rica, endorse the Bitcoin Law.
By Alexander Salazar
