Here’s how Twitter’s latest move can impact the crypto markets
- Twitter earned the right to oversee, transfer, and enable trading of digital assets for its vast user community.
- BTC, ETH and DOGE witnessed a surge in price.
The cryptocurrency markets have been grappling with various challenges since the beginning of 2023. Intensified regulatory scrutiny coupled with declining prices painted a dim short-term outlook for the crypto sector.
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Crypto on Twitter
However, recent events could change the outlook of market participants going forward. According to data from the Nationwide Multistate Licensing System, social media platform X, formerly known as Twitter, has acquired the licensure needed to facilitate cryptocurrency payments and trading in the US, from the state of Rhode Island.
With this official endorsement, Twitter gains the authority to provide a range of services closely linked to virtual assets. This includes the capability for it to oversee, transfer, and enable the trading of digital assets for its vast user community.
Twitter, with an impressive user base of approximately 450 million active individuals, is strategically positioned to integrate cryptocurrency payments. This potential integration has the capacity to reshape the landscape of everyday financial transactions using digital currencies, leveraging Twitter’s extensive user reach to foster adoption and innovation.
The integration of Twitter with cryptocurrencies could result in a spike in liquidity in the cryptocurrency markets and help improve the state of blue-chip cryptocurrencies.
This follows Grayscale’s victory on August 29 over the US Securities and Exchange Commission regarding the creation of a spot Bitcoin ETF.
Bitcoin and Ethereum
With the Grayscale victory and the new Twitter development, Bitcoin could witness a massive uptick and may reach its prior $30,000 levels. In the last 24 hours, Bitcoin’s price has grown by 5.21%. At press time, it was trading at $27,398.06.
Ethereum has followed a similar trajectory and the price of the altcoin has also witnessed similar appreciation.
The number of ETH holders grew in tandem with BTC holders. The blue-chip cryptocurrencies BTC and ETH stand to gain the most out of these positive updates around the crypto markets.
Doge for the win?
However, it won’t be just these currencies that will gain from Elon Musk’s recent move. Dogecoin, the memecoin championed by the social media platform’s CEO, stands to gain the most out of this deal. As the news of X acquiring the license hit the social landscape, DOGE’s price also started to see green.
According to data provided by CoinMarketCap, DOGE’s price surged by 3.96% in the last 24 hours. If the implementation of cryptocurrency payments on X moves forward, it is very likely that Doge holders may benefit quite a bit.
LunarCrush’s data indicated that the social mentions for DOGE had grown by 93.35 over the last week. Other memecoins such as PEPE also observed a significant uptick on the social front.
However, SHIB failed to make a similar impact in this department and failed to attract much attention across social media platforms.
Things looked different in terms of sentiment in the meme coin sector. SHIB and DOGE observed a high uptick in weighted sentiment, suggesting that the overall outlook of the crypto space towards these memecoins was positive. However, the same couldn’t be said about PEPE, which witnessed a decline.
Still a long way to go
Despite the recent price appreciation seen by DOGE, the move wasn’t significant enough to establish a bullish trend. No higher highs and higher lows were seen on the DOGE price chart at the time of writing.
Realistic or not, here’s DOGE’s market cap in BTC terms
Significant bullish sentiment would be required from the buyers to break past previous lower highs and surpass the $0.077 resistance levels.
Furthermore, the RSI and CMF were both relatively high for DOGE suggesting that the price momentum was still with the buyers and the money flow was favoring the bulls.