Bitcoin and other cryptocurrencies experienced volatility on Tuesday as traders eagerly anticipated the Federal Reserve’s upcoming interest-rate decision. Of particular interest was the sharp rise of Dogecoin, amidst speculation of its potential integration into Elon Musk’s plans for expanding his X social-media platform.
Bitcoin remained relatively stable in the past 24 hours, trading at $29,171 with a slight decrease of 0.6%. The leading cryptocurrency has been maintaining a narrow trading range leading up to the Federal Reserve’s decision, scheduled for Wednesday.
According to Antoni Trenchev, managing partner of crypto lender Nexo, Bitcoin could potentially drop further to $25,000 while still preserving its upward trend since November. Trenchev also suggested that a decrease to $27,500 would not be surprising in the short term as investors digest the outcomes of the Federal Open Market Committee (FOMC) meeting.
In addition to Bitcoin, Ether, the second-largest cryptocurrency, rose by 0.7% to reach $1,857. Altcoins, the smaller tokens, also experienced gains, with Cardano seeing an increase of 0.3%.
The standout performer, however, was Dogecoin, which climbed by 4.5%. This surge in value was largely fueled by hopes that Elon Musk would include Dogecoin in his plans to transform the X social-media network, formerly known as Twitter, into a financial platform.
According to Rania Gule, an analyst at XS.com, Dogecoin witnessed a significant increase after Elon Musk changed his Twitter account name to X.com and featured the Dogecoin logo.
Dogecoin, often categorized as a “memecoin” due to its origin from an internet joke, has received extensive promotion from Musk through tweets and television appearances. Earlier this year, the token experienced a surge in price when Musk briefly made the Shiba Inu dog, the symbol of Dogecoin, the primary logo for Twitter’s homepage.
