Why Dogecoin dropped fast on Saturday
According to CNN, investors sold off their Dogecoin holdings after Musk appeared on the show. It dropped 40%, trading as low as $0.44 by Sunday.
- The cryptocurrency peaked at around $0.70 on Sunday, CNN reports.
- Before “SNL” kicked off, one dogecoin sold for about $0.66.
While that’s a significant drop, Dogecoin has seen a 12,000% spike since January and an 800% spike in May alone. The recent hype around Musk’s appearance on “SNL” propelled the cryptocurrency’s value since most of its value is driven by social media hype and discussion, as I’ve written about before for the Deseret News.
Is Dogecoin a safe investment?
Experts have been warning investors that Dogecoin isn’t always a safe bet because of its reliance on hype and conversation. Adam Zadikoff. BRD chief operation officer, told CNBC that Dogecoin has a volatile market and that its success isn’t always guaranteed.
- “It’s great if you have some disposable income and you’re playing around and you’re having fun with it,” he said. “The danger is you’re the last person holding the bag.”
That said, there are some cryptocurrency experts who see Dogecoin rebounding. DigitalCoinPrice predicted the coin will hit $1 in early 2022 and reach $0.91 in December 2021. And CoinPriceForecast believes Dogecoin will be valued at $3 per dogecoin by the end of 2021.