What is causing Dogecoin to crash? After a tweet, Elon Musk sends a token PLUNGING.
Despite a strong rally in recent months, DOGECOIN has experienced yet another setback. What is causing Dogecoin to crash?
Last Friday, Dogecoin (DOGE) plummeted, dragging the market down with it as a number of other cryptocurrencies, including Bitcoin and Ethereum, fell in tandem. The three most popular currencies have already fluctuated across the market in response to public sentiment and prominent leaders’ activities over the last year. They’re all still extremely volatile, especially when one man in particular prods them.
DOGE became one of the most popular cryptocurrencies in the market in 2021.
With the help of multi-billionaire Elon Musk, it rose from obscurity to a value of up to 4,000 percent.
His clout has been a double-edged sword, and it has sadly worked against the market in recent weeks.
The Tesla CEO reacted angrily to a scathing critique of his stance on Bitcoin, which he feels emits too many fossil fuels.
According to Jesse Powell, CEO of crypto exchange Kraken, the currency is “greener” than some claim.
“I believe Elon has to study some more,” he continued.
“Based on what data?” tweeted Mr Musk in response to the report.
Several cryptocurrency coins on the market went into freefall shortly after his statement.
Around 11 a.m., Bitcoin was trading at $39,416 per token, down 1.63 percent two hours after Mr Musk’s tweet.
It had dropped to $38,774 by 1.30 p.m., a considerable loss in just 150 minutes.
Ethereum fell in lockstep with Bitcoin, falling 2.2 percent from $2,442 at the same moment.
It had slumped to $2,388, a recent low, by 1.30pm.
In addition, the iconic DOGE has faced several setbacks.
The currency had a value of $0.314 at 8:15 a.m., but it immediately decreased 1.9 percent.
At 1.15pm, five hours later, CoinMarketCap priced DOGE at $0.308.
DOGE is currently at $0.22, down 14.75 percent in the last 24 hours.
Mr Musk’s remark sparked a heated discussion in the comments section, with many siding with both Mr Powell and Mr Musk.
“He’s certainly brilliant as hell,” one user commented of Mr Musk. But in this case, I have to agree with [Mr Powell].
“Mining operations are already and will continue to be more environmentally friendly. There is no incentive to mine cryptocurrency if the revenues must be paid to overcharging energy companies.”
“Bitcoin miners have a.”Brinkwire Summary News,” another countered.