According to DeFi Umee CEO Brent Xu, there is a gap between reality and market expectations. He noted that the market situation is largely due to positive sentiment and is caused by 3 factors: restraining inflation, confidence in the stability of interest rates and preventing a banking crisis. That’s what the market thinks, but in reality interest rates are rising.
“There’s not a lot of liquidity and depth around, so you’re seeing these volatile movements right now,” Brent Xu noted.
The latest consumer price index, which plays a key role in determining inflation and affects the Fed’s interest rates, is scheduled to be published next week. This will be a good update in the battle of bulls and bears.
On April 3, Elon Musk replaced the classic Twitter logo with a blue bird with a Shiba Inu dog – the mascot of the Dogecoin token. This provoked a 40% increase in the coin. The reason for this was the confidence of investors that Elon Musk will soon be able to integrate the DOGE permanent payment system on Twitter. However, as soon as the old logo was back in place, Dogecoin (DOGE) fell by 7.3% to about $0.086.
Elon Musk has manipulated the price of DOGE in the past. The first time this happened in early 2020, DOGE jumped after the Tesla founder posted a meme on Twitter.
According to the Protos news site, for more than 30 tweets before the end of 2022, Musk raised the price of DOGE by an average of 4.5%.