The cryptocurrency market has enjoyed a surge in the past few days with all 10 of the world’s most highly valued tokens rising. The cause of the bounce-back remains unclear but it has added $150billion (£106billion) to the total market cap of all cryptocurrencies combined. Dogecoin, which is backed by Elon Musk, is currently valued at $0.32 (£0.23), having fallen as low as $0.28 (£0.20) last month.
But crypto analyst AJ Clores believes it is about to rocket, sharing a post on his YouTube channel ‘Self Made’ as evidence.
Reading it out, he said: “Firstly, if Tesla actually accepts Dogecoin as a form of payment which is slowly looking more and more like it will happen, it will see a huge increase.
“Bitcoin when accepted by Tesla saw an increase of 70 percent. If we took the price of Dogecoin now at $0.35 (£0.25) it would see an increase to $0.60 (£0.42).
“Secondly with the Coinbase listing coming up very soon, it seems that Dogecoin really pushes to an all-time high just before a specific news drops.
“During the anticipation for Elon Musk being on Saturday Night Live, we saw the price of Dogecoin go from $0.30 (£0.21) all the way to $0.75 (£0.53) which is a 155 percent increase.
“If we take a 155 percent increase to the price of $0.60 (£0.423 we could see it at $1.60 (£1.13) easily.
“Lastly, if you have ever heard of the ‘Coinbase effect’ it is basically when a crypto is listed on Coinbase it results in a drastic increase in sales and pushes to new all-time highs.”
Coinbase announced today that it has officially listed Dogecoin on Coinbase Pro, a major development that exposes the “joke” cryptocurrency to one of the world’s largest Bitcoin and crypto exchanges.
Coinbase said in a blog post that it will “immediately” begin accepting inbound transfers of Dogecoin to Coinbase Pro in regions where trading is supported.
“You can’t say nothing is possible. Anything is possible.”
Britain’s Financial Conduct Authority (FCA) has previously warned investors of the risks that come with investing in cryptocurrency.
They said: “If consumers invest, they should be prepared to lose all their money.
“Some investments advertising high returns from crypto assets may not be subject to regulation beyond anti-money laundering.
“Significant price volatility, combined with the difficulties valuing [Bitcoin] reliably, place consumers at a high risk of losses.”
Express.co.uk does not give financial advice. The journalists who worked on this article do not own cryptocurrency.