Tesla and SpaceX CEO Elon Musk has once again made a bullish statement about the meme cryptocurrency Dogecoin (DOGE), even as the broader crypto market experiences heavy selling pressure. In response to a comment from Dogecoin co-creator Billy Markus—who said he likes the coin because “it knows it is stupid”—Musk tweeted that DOGE “has potential as a currency.”
Dogecoin's Potential and Positioning
Musk, widely known in the crypto community as the “Dogefather,” has long been a vocal supporter of Dogecoin. He has previously stated that DOGE is the best cryptocurrency for everyday transactions, while Bitcoin is better suited as a store of value. In April 2019, he tweeted, “Dogecoin might be my fav cryptocurrency. It’s pretty cool.” Musk has also revealed that he personally holds Dogecoin, along with Bitcoin and Ether.
This latest endorsement comes at a time of heightened volatility in the crypto market. Analysts suggest Musk's comments could provide short-term support for Dogecoin, but overall sentiment remains influenced by macroeconomic factors such as tightening monetary policy. Notably, Musk has also proposed using Dogecoin to tackle Twitter's spam bot problem—a suggestion that originated from Mark Cuban, owner of the Dallas Mavericks and star of ABC's “Shark Tank.” Musk called the idea “not a bad idea” and hinted that Dogecoin might be accepted for Twitter Blue, the platform's premium subscription service.
Twitter Deal Temporarily Suspended
In a separate development, Musk announced on Friday that his $44 billion acquisition of Twitter has been put on hold. In a tweet, he declared: “Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users.” He quickly added, “Still committed to acquisition.”
Musk has long criticized Twitter's handling of spam and bot accounts, calling it “the single most annoying problem on Twitter.” The pause allows for more time to verify the company's assertion that fake and spam accounts account for fewer than 5% of its monetizable daily active users. Musk has expressed skepticism about these figures, and the delay gives both parties room to assess the data more rigorously.
Despite the temporary hold, market participants expect the deal to eventually close. Musk has already secured approximately $46.5 billion in financing commitments, with participants including Binance and other prominent investors. The outcome of this acquisition could have significant implications for the cryptocurrency industry—if Musk successfully integrates Dogecoin into Twitter's ecosystem, it could dramatically expand DOGE's use cases and mainstream adoption.
Market Reaction and Outlook
At press time, Dogecoin's price showed little immediate reaction to Musk's latest comments, as the broader crypto market continues to digest headwinds from Federal Reserve tightening and geopolitical risks. Analysts believe that Musk's personal influence remains a powerful narrative driver for Dogecoin, but its long-term value will depend on real-world adoption. The progress of the Twitter acquisition will be closely watched by the crypto community as a potential catalyst for both social media and digital currency innovation.