If you were Musk, holding 10 billion Dogecoins along with 1 billion idle cash to play the market, your top priority would be to help Trump achieve MAGA and become the new hero of the United States.
In simple terms, it's to protect your 'capital' — the stocks of Tesla and SpaceX. Dogecoin is just scrap, which must be 'sacrificed' at critical moments, especially when facing major troubles.
That is to say, if Musk feels that his company's stock or political goals are facing a major crisis, he will heavily sell Dogecoin, and after selling, he can still catch it himself, benefiting in both directions. Because if his company collapses, Dogecoin will be worth nothing, just back to square one.
In plain terms, the value of Dogecoin is an 'enhanced leverage' of Tesla, SpaceX, and PayPal. Buying Dogecoin is like buying 'debt' from 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 cryptocurrency market has become quite interesting now: Bitcoin has become a 'follower' of the US stock market, quickly 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 rise, buy Bitcoin; if you think Tesla will rise, buy Dogecoin.
However, risks must be noted!
Now the Dow, Nasdaq, and Tesla are all at high positions, with many people being bearish, posing potential big and small risks, such as war, tariffs, repatriation, etc. Tesla has doubled, Dogecoin has tripled; if Tesla drops 30%, Dogecoin must drop 60%! Musk won't notify you in advance.
Whether Bitcoin rises or not has nothing to do with Dogecoin, but if Bitcoin goes bearish, Dogecoin will definitely go bearish too. Because in a bear market, there is 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 is about to end.
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