Crypto Rises As Musk Tweets About Dogecoin Again, European Inflation Surges

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Finally a good day for cryptoland after a month of lacklustre performances and a selloff for Bitcoin caused by China, Musk and the ESG crowd. Now things seem to be turning around and crypto analysts might not like it, but Dogecoin is once again front and center. The Shiba Inu memecoin was accepted by Coinbase for trading and later on eternal fan Elon Musk tweeted about the coin as well.

Found this pic of me as a child pic.twitter.com/hUEKluRAdP

— Elon Musk (@elonmusk) June 2, 2021

All this was enough to send the memecoin some 40% higher at a certain point whilst the ever popular Dogecointo1dollar was trending on Twitter again.

Several other coins also rose, with Binance Coin and Polkadot both seeing more than 10% increase during the day.

Bitcoin 100-day MA

Bitcoin meanwhile crept closer to the illustrious level of $40k again, a technical barrier it needs to break before analysts feel another leg up might be coming. If that trendline is not broken in the next few days, technical analysts fear that the $30k level might be looked up again.

The 100-day moving average has in the meantime fallen to $38k, and Bitcoin would do well to stay above that.

European inflation

The inflation levels, which signify rising prices, were enough to panic US investors last month when they all of a sudden reached 4%. Now the same has happened in Europe, where a 2% inflation level is way above what the ECB desires.

Eurozone’s May inflation accelerates to 2%, up 0.4% from previous month due to higher energy costs since late 2018 & above European Central Bank’s ‘below but close to 2%’ target.https://t.co/fOIHY4xBf8

— Chutintorn Sam Gongsakdi (@Chutintorn_Sam) June 2, 2021

Just like Jay Powell, the Fed Chair over in the USA, Christine Lagarde, the Head of the ECB in Europe, has declared that this is probably a temporary thing which will flatten out in time.

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Panicked investors are not so sure though and wonder whether consumers will be put off by rising consumer prices.

phongphan / Depositphotos.com