Dogecoin cryptocurrency investors and traders are worried because its price is crash. The reason is the price of Dogecoin fell sharply after setting the highest record price of all time.
Quoting Coindesk, Friday (23/4/2021), at 11.00 WIB, Dogecoin is valued at US $ 0.22 per coin. In the last 24 hours Dogecoin price has plunged 21.36%.
Since the beginning of the year Dogecoin has provided investors with a return (yield) of 4,202.3%. Now, Dogecoin’s market capitalization is only US $ 27.48 billion. Even though its market capitalization had touched US $ 52.6 billion on April 19, 2021. This means that the market capitalization lost US $ 25.12 billion in five days.
Dogecoin had recorded an all-time high on April 16, 2021. At that time the Dogecoin price touched US $ 0.45 per coin. This price increase has made many investors and traders optimistic. The believe that the price will soon touch US $ 1 per coin.
To pursue this target, crypto-money supporters created the hashtag #DogeDay with a Dogecoin price target of US $1 on April 20, 2021. However, the plan did not go smoothly. Dogecoin price is in a downward trend.
Dogecoin Euphoria Considered as Stupid Theory
Euphoria of the Dogecoin price increase has been responded cynically by some observers. One of them is David Kimberley, an analyst at Freetrade, an investment application in the UK. “The revival of Dogecoin is a classic example of a bigger stupid theory at play,” said David Kimberley, as quoted by CNBC International, Friday (23/4/2021).
“People buy cryptocurrency, not because they think it has any significant value, but because they hope other people will buy it and then the price goes up and after that they can sell and make money quickly.”
“When everyone else does this, the bubbles eventually have to burst and you will be left if you don’t make it out in time. And it’s almost impossible to say when that will happen.”
“This is a dual case in the crypto market where a small group of players often holds the bulk of the coins in circulation. That means it only takes one person to sell all of their holdings for the entire market to collapse.”
Dogecoin co-founder Billy Markus also tries to remind people to stay too caught up in the euphoria. And also maintain their common sense while investing in volatile assets like cryptocurrencies.
“Euphoria is incredible medicine, but at least pay your bills and feed your family and have a safe reserve fund,” he wrote on his personal Twitter account.
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