Dogecoin Rises 8% Following Elon Musk’s McDonald’s Offer

• Elon Musk recently confirmed that he would eat a McDonald’s happy meal on TV.
• The offer was initially made a year ago and is contingent on McDonald’s enabling Dogecoin payments.
• Dogecoin gained more than 8% following Musk’s tweet.

Elon Musk’s recent tweets about Dogecoin sent the meme coin soaring once again. The self-described “Dogefather” took to Twitter recently to confirm an offer that he made last year. The offer was simple: Musk would eat a McDonald’s happy meal on TV if McDonald’s starts accepting Dogecoin.

The offer was initially made in January 2022. At the time, DOGE was trading at $0.13, but Musk’s McDonald’s offer led to a 15% increase in the meme coin’s price, taking it to $0.15 over the following days. However, the rally was short-lived and Dogecoin soon reversed all the gains that came thanks to the Dogefather’s offer.

On 27 January 2023, Elon Musk was tagged in a tweet from McDonald’s. The tweet quoted Musk’s initial offer and asked if the offer was still open. Musk soon confirmed that the offer was indeed open. This latest Dogecoin endorsement sent the token soaring once again. DOGE went from $0.085 to $0.092 the following day. This 8% rally took the token to a 6-week high.

Traders rushed to place long bets on DOGE following Musk’s tweet. The same is reflected in the token’s daily trading volume, which increased by 26% after the tweet. Data from Coinglass shows that longs outweighed shorts on the 27th and 28th of January, leading to immense buying pressure.

Pumps from tweets seldom last long and such was the case with Elon Musk’s latest tweet which led to a considerable pump in Dogecoin’s price. It fell by 4% from its 6-week high and is currently trading at $0.88.