Volatile meme cryptocurrency Dogecoin has made a surprising recovery from yesterday's bloodbath after Elon Musk posted another cryptic tweet that sent the market wild overnight.
While the joke coin had defied all odds and made many of its early investors rich, it, like almost all well-known cryptocurrencies, took a hammeringthis week.
The market took a dive this week after China banned crypto as a form of payment, but Dogecoin was on the mend overnight, gaining more than 12 per cent alongside Bitcoin, Ethereum, Cardano, Stellar and other tradeable digital tokens.
Its value shot up after a strange tweet from Tesla CEO Elon Musk.
"How much is that Doge in the window?," Musk tweeted overnight alongside a photo of Tesla's soon-to-be-produced Cybertruck with the word "Cyberviking" emblazoned in neon underneath.
The divisive new vehicle from Tesla is an all-electric, battery-powered, light duty truck.
Within 23 minutes, the tweet had nearly 60,000 likes, had garnered more than 14,500 re-tweets and generated nearly 17,000 comments.
Dogecoin surged last week and then quickly receded after Musk asked his 53.9 million Twitter followers whether Tesla should accept the cryptocurrency originally meant as a joke as a form of payment. The survey had more than 3.9 million respondents, with almost 80 per cent voting yes.
That followed a Dogecoin slump after Musk jokingly called the cryptocurrency a "hustle" during one of his skits on Saturday Night Live. It recovered its losses and then some on Monday amid renewed optimism it could be used as a method of payment.
Tesla's bizarre new Cybertruck. Photo / Supplied
The Tesla CEO has sparked crypto market chaos with his tweets over the past few months.
Last week, he said the electric carmaker would no longer accept bitcoin as payment for its cars, citing environmental concerns associated with the "mining" of bitcoins. Musk's comments wiped about $388 billion off the cryptocurrency market that day.
Tesla CEO Elon Musk. Photo / Getty Images
And earlier this week, Musk appeared to imply in a tweet that Tesla either had sold all of its bitcoin holdings or planned to. Hours later, he clarified Tesla had not sold any bitcoin.
Musk tweeted at 1am yesterday AEST to indicate Tesla was standing firm despite the crash.
The diamond hands emojis, as KnowYourMeme explains, is a reference to "traders who believe in the eventual profitability of their stocks and securities and keep holding them while their value drops."
Will crypto go back up?
Pete Cheyne, Founder of Bottlepay, a bitcoin-based global payments app, said he's undeterred by the recent crash.
"Those of us in the space are battle hardened to these kind of events, we will continue forward building value into these burgeoning protocols," he told the Post. "When zooming out on the charts, these intraday repricing events are hardly recognisable. It's best to look at the markets with a long-term lens."
Julius de Kempenaer, senior technical analyst at Stockcharts.com, added that a rapid recovery was possible, but the overall upside potential was limited and the downside risk was huge.
