Dogecoin Skyrockets after Elon Musk Tweet

Dogecoin jumped to a new high of nearly 75 cents on Friday, after Elon Musk tweeted of his upcoming Saturday Night Live (SNL) appearance this weekend with popular Shiba Inu dog, along with the text , "A guest starring ...".

Dogecoin rose from around 65 cents to 75 cents after the tweet.

Investors put massive bets into Dogecoin this week ahead of SNL appearing at Musk, in a bet, Musk will present a skit featuring Dogecoin and pushing the price higher. Small investors, many of whom communicate through Reddit, have pledged to take Dogecoin "to the moon," $1 to the token.

Dogecoin, which started as a joke, rose to become the fourth largest cryptocurrency, with a market cap of $100 billion. In the past week alone, Dogecoin's value has more than doubled, rising nearly 1,000%.

Musk's tweet for the photo, which also features Miley Cyrus and The Kid LAROI, has been retweeted more than 65,000 times in just two hours.

https://twitter.com/elonmusk/status/1390774840135766019?s=20

Musk issued a word of caution in a tweet early on Friday morning, saying, "Cryptocurrency is promising, but please invest cautiously!"

Many are concerned that Dogecoin's price has inflated due to rampant speculation, and its model of unlimited coin supply makes it unsustainable.

https://twitter.com/elonmusk/status/1387290679794089986?s=20

In January, a tweet from Musk referring to Dogecoin caused prices to rise 50%. Telsla's CEO tweets recently included, "The Dogefather" followed by "SNL 8 May" continued to fuel the increase. Most of the big Dogecoin price spikes seem to have been a direct response to tweets from Musk.