Reading the Elon Musk ‘Tea Leaves’ — Is Dogecoin Coming for Twitter?

Elon Musk’s recent subtle change to his Twitter bio has once again sparked speculation about the future of Dogecoin on the platform. After Twitter’s rebrand to “X,” Musk’s profile location now features both an “X” and a “D,” which many interpret to reference Twitter’s new branding and Dogecoin, a memecoin he has publicly supported in the past.

Real Vision CEO Raoul Pal shares a similar conclusion, suggesting that Musk could use Dogecoin for global payments to creators on the platform, considering his existing significant holdings and fondness for the cryptocurrency. Pal proposes that Dogecoin might help Musk bypass securities laws, thereby reducing execution risk compared to creating a platform-specific token.

Twitter’s sudden rebrand to “X” on July 24 took many by surprise, and the ensuing speculation about Dogecoin caused a slight price gain of up to 5% for the memecoin, according to TradingView data. Dogecoin is trading at $0.07, showing a 9.5% increase over the last seven days.

eToro market analyst Josh Gilbert believes that while the rebrand may trigger a short-term rally for Dogecoin, Musk’s actions could significantly impact the crypto market. Gilbert suggests that Musk’s plans to build payment networks using his platform could potentially position it as a competitor to established cryptocurrencies like Ethereum and Bitcoin.

In light of Musk’s decisions and the market’s reactions, Gilbert advises investors not to get distracted by short-term events and instead focus on longer and broader trends in the crypto space.

As the speculation continues, it remains to be seen how Musk’s affinity for Dogecoin will play out and how it may shape the future landscape of the memecoin and the broader cryptocurrency market. For now, the crypto community eagerly awaits further hints and announcements from the enigmatic tech entrepreneur.