SEC investigates Musk for alleged manipulation of Dogecoin price

On February 24, Musk posted a picture of Dogecoin on the moon, and then commented "on the moon", implying that the price of Dogecoin continued to rise to a new high.

The price of Dogecoin then began to rise again, reaching 0.05 cents.

But when asked why he always mentioned Dogecoin, Musk's answer was not a technical or economic question at all, but a very casual answer: "I like dogs and emoticons."

Although it seems unlikely that Musk will continue to tweet about Dogecoin if he is investigated by the U.S. Securities and Exchange Commission (SEC), it is believed that it is more likely that Musk will ignore the investigation.

If the news is true, it fits with Elon Musk's character of getting into trouble with the SEC over the Dogecoin issue. Previously, the SEC sued Musk for security fraud because of his controversial tweet "Funding Secured" about taking Tesla private, and then reached a settlement with him in April 2019.

Musk and Dogecoin

Musk has repeatedly expressed his love for Dogecoin in many tweets. He once changed his Twitter profile to the former CEO of Dogecoin. Some time ago, he said that he bought some Dogecoin for his youngest son. On February 15, he called on the big holders of Dogecoin to give up most of the coins because they were too concentrated in the hands of a few people, which was not conducive to price increases. Within a month, Dogecoin soared from $0.007 to $0.08, and then fell back to $0.05. From the iron facts, Musk's attitude did have a positive impact on the price of Dogecoin.

Bitcoin consolidates below $50,000 Musk is investigated by the SEC for his comments on Dogecoin

Bitcoin briefly rallied, topping $50,000 in a fresh sign of bullishness in the cryptocurrency industry, with blockchain data showing some big investors starting to hoard the currency for the long term. But it is currently trading in a narrow range, with investors and traders remaining cautiously optimistic after a recent pullback.

It was the second straight day of gains for bitcoin, easing concerns earlier in the week that a further sell-off could be in the offing. On Monday and Tuesday, bitcoin fell 15 percent, its biggest two-day correction in 11 months, and some analysts were quick to warn of a fall.

In the derivatives market, open interest in Bitcoin options is slowly recovering. Previously, open interest in Bitcoin options fell slightly from an all-time high of about $13 billion set on Sunday. "The Bitcoin market is quite calm today," said the head of trading at the crypto payment platform. "After experiencing severe contract liquidations a few days ago, the derivatives market is returning to normal. Nearly $6 billion worth of long futures contracts were liquidated. The market is currently trying to consolidate above $50,000." "Traders are still cautious today," added. "It's 'wait and see'."

"Every time Bitcoin breaks below $50,000, there are players who keep accumulating and thus pull the price back to around $50,000," said Andrew, an executive at quantitative trading firm. Several market indicators suggest that traders and investors remain largely bullish after the price volatility earlier this week. More than 13,000 bitcoins, worth about $650 million, were withdrawn from institutional-focused exchanges on Wednesday afternoon. The move is typically a bullish signal for the market and reflects institutional investors' support for the long-term value of bitcoin as they move bitcoin to custodial wallets.