Bitcoin BTC+7.1%, ethereum and other major crypto currencies have bounced back over the last 24 following a devastating crypto crash that wiped almost $1 trillion from the combined crypto market.
Bitcoin has added around 10% since falling to lows not see for more than a year, climbing back over $30,000. Meanwhile, ethereum and its biggest rivals have each added between 15% and 25%.
Now, Tesla TSLA -0.8% billionaire and long-time dogecoin supporter Elon Musk has once again signalled his support for the meme-based bitcoin rival helping it’s price to bounce by around 20%—just weeks after mocking the legendary investor Warren Buffett for attacking bitcoin.
Last month, Musk said he’d target crypto scams and bots if he does manage to take Twitter private and also suggested Twitter Blue’s subscription fee could be payable in dogecoin.
“[Dogeco DOGE+13.1%in] has potential as a currency,” Musk posted to Twitter, replying to dogecoin co-creator Billy Markus who had written, “the reason I like dogecoin is because it knows it is stupid.”
“I enjoy that something stupid could also have utility and be successful,” Markus added.
The dogecoin price has rallied over recent weeks following news of Musk’s $44 billion bid to take Twitter private, soaring on expectations Musk could move to embed dogecoin into Twitter, potentially using it for payments on the platform.
However, dogecoin has fallen almost 90% since it reached an all time high of over 70 cents amid a Musk and high-profile investor fueled rally last year.
Dogecoin, now once again a top ten cryptocurrency, according to CoinMarketCap data, had crashed this week along with bitcoin, ethereum and other cryptocurrencies as a perfect storm of Federal Reserve interest rate hikes, the Fed beginning to shrink its yawning $9 trillion balance sheet and a major stablecoin meltdown sent cryptocurrencies in a tailspin.
Panic spread like wildfire through crypto traders and investors after the $18 billion algorithmic stablecoin terraUSD (UST UST -77.5%) lost its peg to the U.S. dollar, wiping out the price of its support coin luna which has now lost almost more than 99% of its value.
Amid the carnage, the largest stablecoin tether also appeard to briefly lose its $1 value, sparking fears the bitcoin and crypto crash could spiral out of control.