Bitcoin
and other cryptocurrencies were shifting between gains and losses on Tuesday in the run-up to the Federal Reserve’s interest-rate decision.
Dogecoin
was rising sharply as traders speculated whether the token could be incorporated into Elon Musk’s plans for the expansion of his X social-media platform
Bitcoin
had traded broadly flat over the last 24 hours. At last check it was at $29,171, down 0.6%. The largest cryptocurrency continues to trade in a relatively narrow band ahead of the Fed decision on Wednesday.
“Bitcoin has room to fall further to $25,000 and keep the uptrend from November intact. A drop to $27,500 wouldn’t be a shock in the near term as investors digest the FOMC [Federal Open Market Committee] meeting,” said Antoni Trenchev, managing partner of crypto lender Nexo.
Beyond Bitcoin,
Ether
—the second-largest crypto— rose 0.7% to $1,857. Smaller tokens, or altcoins, also were gaining, with
Cardano
up 0.3%.
However, the standout riser was
Dogecoin,
climbing 4.5%. The move looked to be based on hopes that Elon Musk might opt to use the cryptocurrency in his plans to expand the X social-media network—the new name for Twitter—as a financial platform.
“Dogecoin … saw an increase after Twitter’s CEO, Elon Musk, renamed his account to X.com and posted the Dogecoin logo,” said Rania Gule, an analyst at XS.com.
A so-called memecoin because it was created based largely on an internet joke, Dogecoin repeatedly has been promoted by Musk through tweets and on television. The price of the token surged earlier this year when Musk briefly made a Shiba Inu dog, the symbol of the Dogecoin cryptocurrency, the main logo for Twitter’s homepage.
Write to Adam Clark at adam.clark@barrons.com
Read the full article here