BTC Stays Under $30K, DOGE Surges 7% on Musk's Twitter

 BTC Stays Under $30K, DOGE Surges 7% on Musk's Twitter

BTC Stays Under $30K, DOGE Surges 7% on Musk's Twitter((Image-Getty)

Bitcoin (BTC) was trading just below $30,000 in the early Asian market on Wednesday as investors awaited potential news on the U.S. Federal Reserve's rate-hike plans. Meanwhile, Dogecoin (DOGE) saw a 7% surge, driven by optimism surrounding Elon Musk's recent activity on Twitter and its potential impact on the meme coin.

About a month ago, BTC surpassed $30,000 following BlackRock's application for a bitcoin ETF, which sparked speculation about the inflow of funds from traditional investors into digital assets if regulatory approval was obtained. However, BTC has been stuck around this level since then, partly due to concerns about the Federal Reserve's upcoming decision on July 26, which is likely to result in a 25 basis point (bps) rate increase.

At the time of reporting, BTC was priced at approximately $29,140, showing a 0.2% increase compared to the previous 24 hours. Noelle Acheson highlighted in her "Crypto is Macro" newsletter that inflation and rate concerns might be contributing to the current lower crypto prices.

On Monday, BTC experienced a sharp drop below $29,000, its lowest level since June, reportedly due to a private conversation in which Binance CEO Changpeng "CZ" Zhao hinted at past wash trading by the crypto exchange's affiliates. Additionally, China's policymakers raised concerns about the country's economic recovery, adding to the negative sentiment.

Dogecoin (DOGE), on the other hand, saw a spike in price after CoinDesk published an article speculating that Elon Musk's transformation of Twitter (now called X) could expand the use of DOGE and other cryptocurrencies. Musk's interest in DOGE has been evident even before he acquired Twitter, and his public comments have previously influenced the token's price.

Other major cryptocurrencies, such as Ether (ETH), XRP, and Solana (SOL), experienced mixed movement. Ether was trading around $1,850, showing a 0.4% increase in the last 24 hours, while XRP and SOL had gains of 1.3% and 0.9%, respectively.

Overall, the CoinDesk Market Index, a gauge of the overall crypto market performance, saw a 0.3% increase. However, the CoinDesk Bitcoin and Ethereum trend indicators were in neutral territory, signaling a departure from the previous uptrend mode seen earlier in the month.