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Ten years in the market have taught me one thing: correlation does not equal causation. Nevertheless, the connection between Elon Musk's statements and Dogecoin's volatility is evident. His tweets, mentions of Doge in public appearances—all of this instantly reflects on the price.
-The question is how much of this is *real* correlation reflecting market sentiment, or is it *manipulation*? Musk is an influential figure, and his actions can easily shift the market balance.
-On one hand, his enthusiasm for Dogecoin has created a cult around the coin, attracting new investors, which has led to a "pump and dump" effect. On the other hand, such volatility threatens Doge's reputation as a reliable investment.
-Numerous sharp price jumps are not a sign of a stable and growing ecosystem. Investors inspired by Musk often speculate, ignoring fundamental factors. The result is potentially significant losses for those who fail to exit the market in time.
-For an experienced trader like me, such a situation is a field for speculation. But for long-term investors, dependence on the mood of a single individual is an extremely risky strategy.
-In summary: Musk is a catalyst for Dogecoin's volatility. But will Doge survive without his constant intervention? Time will tell. In the meantime, be cautious with investments in assets whose fate depends on tweets.
