If you were Musk, holding 10 billion Dogecoins along with 1 billion in spare cash to play the market, your top priority would be to help Trump achieve MAGA and become a new hero in America.
So, how do you plan to cash in on those Dogecoins? To put it bluntly, it's all about preserving your 'capital'—the stocks of Tesla and SpaceX. Dogecoin is just scrap material, and it needs to be 'sacrificed' at critical moments, especially when facing big troubles.
In other words, if Musk feels that his company's stock or political goals are facing a major crisis, he will heavily crash Dogecoin, and after crashing it, he can still catch it, benefiting from both sides. Because if his company fails, Dogecoin will mean nothing and return to square one.
What is the true value of Dogecoin?
To put it simply, the value of Dogecoin is the 'enhanced leverage' of Tesla, SpaceX, and PayPal. Buying Dogecoin is like buying a 'bond' in Tesla, except Musk doesn’t have to pay you back. The price of Dogecoin fluctuates around this value; if you understand Tesla, you can also master Dogecoin.
The crypto world has become quite interesting: Bitcoin has become a 'follower' of the US stock market and is catching up to the status of gold; Dogecoin has become a 'follower' of Tesla.
How to operate?
In simple terms, if you think the Dow or Nasdaq will go up, buy Bitcoin; if you think Tesla will go up, buy Dogecoin.
However, risks should also be noted!
Right now, the Dow, Nasdaq, and Tesla are all at high positions, with many people being bearish, and there are potential big and small risks, such as war, tariffs, deportations, etc. If Tesla doubles, and Dogecoin triples, if Tesla drops by 30%, Dogecoin must drop by 60%! Musk won't give you any advance notice.
How to sell it?
Whether Bitcoin goes up or down has nothing to do with Dogecoin, but if Bitcoin goes bearish, Dogecoin will certainly follow. A bear market in crypto means no money, no people, and no liquidity. You don't necessarily have to buy in a bull market, but you must sell when the bull market is about to end, especially when Bitcoin's peak is near. A Bitcoin bull market is the result of an influx of money globally. When the dollar raises interest rates, reduces its balance sheet, and stops lowering rates, that's when the bull market is over. The most misleading thing is when, right before the end of a Bitcoin bull market, those altcoins are still rising; that's when Dogecoin has its last chance to escape. The risk is already high when Dogecoin starts to rise with altcoins, because like Bitcoin and Ethereum, it is related to the US stock market and global liquidity.
Specific timing?
For instance, at the end of 2024, we know that there will be moderate interest rate cuts and balance sheet reductions in 2025, and there hasn't been any announcement about expanding the balance sheet yet, so a significant rise in altcoins may have to wait until the third or fourth quarter of 2025, or even longer. The best time to sell Dogecoin is also after the second half of 2025. In other words, from now until then, it's all at the bottom; rising from 0.1 to 0.4 is still the bottom, and falling back to 0.2 is still the bottom.
For the next strategic layout, I will guide everyone to aim for the lucrative opportunities in altcoins, expecting a space of over ten times is definitely not a problem. Like and leave a message, and I'll help you layout the entire bull market!
