Dogecoin Helped by News that Elon Musk Will Be Buying Twitter
Twitter Acquisition Deal
After a month-long saga, the social media firm announced on Monday afternoon that it had agreed to be acquired by entity wholly owned by Elon Musk, for $54.20. The roughly $44 billion deal, if completed, will take Twitter private and is expected to close in late 2022 [1].
The story had started in early April when an filing with the US Securities and Exchange Commission (SEC) had revealed that Mr Musk had acquired an around 9% stake in the company [2]. He had then then been offered him a seat at the board, which he eventually rejected and the made a bid to acquire 100% of Twitter [3].
It is still not known if Mr Musk will become the CEO, but he is a visionary and an agent of change, which means that a shake-up could be in the cards. On Monday's press release he said that he wants to make "Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans".
Elon Musk & Doge
Among other things, he has already proposed the addition of an edit button, various changes on Twitter's subscription service, while he had also suggested an option to pay in Dogecoin. [4]
The CEO of Tesla Motors Inc had already accepted Dogecoin as a form of payment for brand merchandise [5] and he also owns cryptocurrenices. In mid-March he had twitted that "I still own & won't sell my Bitcoin, Ethereum or Doge fwiw". [6]
DOGE/USD Reaction
The Cryptocurrency rallied on Monday on reports of a deal and remains on the offensive today and after the actual announcement. This bring gains of more than 4% today and this month's high into its crosshairs (1.1802), but it may be early for a larger advance towards and beyond 1.1965.
On the other hand, the move looks overextended and that could potentially create pressure back below 0.1500, but a strong catalyst would be required to threaten the ascending trendline from this year's lows (0.1217 -0.1190).
Nikos Tzabouras
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
References
| Retrieved 26 Apr 2022 https://www.prnewswire.com/news-releases/elon-musk-to-acquire-twitter-301532245.html | |
| Retrieved 26 Apr 2022 https://d18rn0p25nwr6d.cloudfront.net/CIK-0001418091/f66f56c1-eb52-43f8-a7ff-992dc80a7396.pdf | |
| Retrieved 26 Apr 2022 https://d18rn0p25nwr6d.cloudfront.net/CIK-0001418091/aa412090-b7e5-470b-bfea-35d48c913951.pdf | |
| Retrieved 26 Apr 2022 https://mobile.twitter.com/elonmusk/status/1512954808394731521 | |
| Retrieved 26 Apr 2022 https://twitter.com/elonmusk/status/1481873421390680065 | |
| Retrieved 07 Jun 2023 https://twitter.com/elonmusk/status/1503222294277197829 |
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