Elon Musk's Influence on Dogecoin, Bitcoin's NFTs, and more.

Recently, the price of Dogecoin increased by 3%, hitting $0.08881, compared to an 8% growth for the cryptocurrency market as a whole.

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DOGE has grown 6.5% over the past 30 days, primarily due to Elon Musk's (owner of Tesla, SpaceX, and Twitter) ongoing support for the leading meme coin on the market.

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Musk created a fresh online discussion after wearing a Dogecoin T-shirt to the Super Bowl by tweeting a photo of his Shiba Inu puppy (Dogecoin's mascot).

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Nevertheless, as DOGE has gained less than other key tokens over the past few hours, probably, the billionaire has not acquired any further meme coins, contrary to what many believed after seeing the rocket magnate's newest tweet.

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Indicators for DOGE show that the cryptocurrency may see additional gains in the future. Its relative strength index has increased from 40 to over 60 in the past several days. Its position indicates that it is not yet in the overbought zone and might thus see more increases.

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Similarly, the 30-day moving average continues to advance above the 200-day moving average and does not appear to have yet reached its top. If DOGE can surpass $0.09, it might experience prolonged growth.

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It appears that the majority of the current surge in DOGE is due to the recent market rally, which has also pushed the meme token higher.

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However, it is significant that the price increase corresponds with Musk's last tweet, in which he vaguely references Dogecoin but provides no actual evidence that he has raised his holdings.

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This tweet appears to have triggered a brief rally in which DOGE surged to the $0.09 level of resistance but rapidly plummeted as other currencies continued to rise. Therefore, one might readily infer that Musk manipulated the DOGE price to liquidate his shares.

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Ordinals are the new NFT protocol for Bitcoin. Earlier this month, the 14-day exponential moving average (EMA) of the number of Bitcoin network transactions hit its highest level since April 2021, according to statistics from crypto analytics firm Glassnode.

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On February 7, more than 13,000 Ordinal NFTs were created on the Bitcoin blockchain, according to claims from crypto company BitMEX.

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Several observers are concerned that Ordinal NFTs, which have caused numerous Bitcoin blocks to surpass the 4MB limit, may exert increasing pressure on network costs. Nonetheless, according to Glassnode's data, there has been no charge rise thus far.

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In addition, the installation of NFTs on the Bitcoin blockchain is not universally welcomed. Others claim that it contradicts Satoshi Nakamoto's assertion that Bitcoin's blockchain was designed just for financial transactions.

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Others argue that if Ordinal NFTs were to result in an increase, this would be beneficial for miners, hence improving the security of the BTC network. As fees have not yet increased, Bitcoin miners' earnings remain modest.

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Glassnode's four-year Z-Score for miner revenue remains close to the lows reached in July 2021. In any event, it is likely that Bitcoin's NFTs will affect BTC's price in some way.

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Ordinary NFTs have had little effect on network fees so far. Thus it may be inferred that they have had little impact on the price of BTC. Even if transaction volume has grown, the number of daily users appears to have stayed constant.

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Hence, it appears that the introduction of Bitcoin NFTs via the Ordinals protocol has not yet significantly influenced the growth in network activity and Bitcoin acceptance and, thus, has not yet affected the price. Yet, this is a brand-new technology, and its impact on the network has not yet been determined.

SEC position on cryptocurrencies: restricting hedge fund exposure to cryptocurrencies

The US Securities and Exchange Commission (SEC) has suggested draft regulations that would make it harder for hedge funds, such as private equity firms and pension funds, to deal with cryptocurrency startups.

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The idea would make it extremely difficult for cryptocurrency firms to keep digital assets on behalf of their clients as "qualified custodians," a certification that permits corporations to hold clients' assets.

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A five-member SEC panel will vote on the plan to determine if it may go to the next round.

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Upon approval, the plan might be modified based on any relevant comments. The assets of hedge funds, some venture capital companies, and pension funds must be held by "qualified custodians."

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The new regulatory change might require some of these companies to switch custodians. Mainly, the report indicates:

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"If the regulation is finalized, cryptocurrency-dedicated institutional funds may be required to relocate their customers' assets elsewhere. In addition, they may be subject to spot inspections linked to their custody reports or other repercussions."

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The SEC issued a ruling in 2020 addressing who should be needed to serve as a certified cryptocurrency custodian. The fall of FTX, previously the third-largest cryptocurrency exchange in the world, in November of last year has compelled the agency to study the problem with new vigilance.

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