With Elon Musk buying approximately a 9% stake in Twitter (NASDAQ:TWTR), there was significant price action in the equity and cryptocurrency space. The Tesla (NASDAQ:TSLA) CEO has been a vocal supporter of Dogecoin (DOGE-USD), leading some to speculate how the crypto may be impacted by Musk’s latest move.
In equities, TWTR stock surged on this news and other social media stocks were also in the green. Subsequent to buying his stake in the social media company, Musk tweeted about several possible features for Twitter.
Musk also suggested Dogecoin payment integration should be allowed for Twitter Blue. The latter is a proposed subscription version of the Twitter platform and is expected to be available at a monthly rate of $3.
Dogecoin touched recent lows of 11 cents on March 14. The proposal by Musk sent it higher to intra-day levels above 17 cents last week.
Of course, there has been a sharp pullback in Dogecoin due to two reasons. First, the cryptocurrency space witnessed a deep correction. Further, Musk decided against joining Twitter’s board of directors. Is the dip another opportunity to buy Dogecoin?
The first point to note is that Musk continues to hold and back the digital currency. As crypto adoption increases, Dogecoin is likely to trend higher. Also, Twitter specified in a filing that Musk would be limited to owning no more than a 14.9% stake if he serves on its board.
This might be the reason he chose not to join the board, as he may be interested in increasing his Twitter stake. Analysts are speculating about the possibility of a hostile takeover by Musk. Therefore, there is still a possibility of Dogecoin payment integration with Twitter.
Besides the Twitter factor, the number of global crypto holders were 300 million as of January 2022. An optimistic scenario indicates that total crypto holders might reach one billion by the end of the year. Massive adoption is a positive catalyst for Dogecoin, which is backed by the world’s richest man.
Overall, it might be too optimistic to expect Dogecoin to touch all-time highs of 74 cents. However, I would bet on 30% to 50% returns from current levels in 2022.
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