Musk's tweet appears to have a substantial effect on Dogecoin's value because Dogecoin soars immediately after he mentions it

Dogecoin has a sizable fan base and has been used to raise money for a number of charity projects despite its beginnings as a joke. The founder and CEO of SpaceX and Tesla, Elon Musk, has been a loud advocate for Dogecoin on social networking sites, tweeting about it and even incorporating it into the business plans of his firms. Dogecoin's value seems significantly gets impacted by Musk's tweet about it. Dogecoin soars ever after he mentions it.

Yesterday after Elon Musk shared a meme featuring his dog Floki acting as the next head of Twitter, traders are boosting Doge. Dogecoin's market value as of this writing is $0.08915, up 3.19% in the last 24 hours.

There are a number of factors that contribute to Elon Musk's tweet having such a big effect on Dogecoin's valuation. Moreover, Musk has a sizable social media following, and millions of individuals read his tweets. He receives a lot of attention and can spread the buzz about Dogecoin when he tweets about it. Second, many people interpret Musk's tweets as supporting Dogecoin, and his followers would interpret this as a recommendation to buy the cryptocurrency. This might result in an increase in demand for Dogecoin, which would raise its price.  Last but not least, the cryptocurrency market is highly volatile and susceptible to a range of factors, including activity on social media. Musk's tweets concerning Dogecoin are merely one among many other considerations.