If ever there was a case of “buying the rumor, selling the fact,” it was with Dogecoin on Saturday night.
Since Tesla’s boss and self-proclaimed “CEO of Dogecoin” Elon Musk tweeted last month that he would host “Saturday Night Live” on May 8, the excitement about the meme-based cryptocurrency has soared to an even more astronomical level. above.
After all, Musk’s tweets had served as jet fuel for the price of Dogecoin all year round. So imagine what an appearance on national television could do!
By appearing, Musk would apparently draw the masses’ attention to the meme coin represented by Shiba Inu and drive the price of the cryptocurrency to Mars and beyond. Since Jesus rode a donkey through the streets of Jerusalem on Palm Sunday, expectations of a person have not been so high.
Yesterday that excitement reached a crescendo as the price of Dogecoin hit an all-time high of 74 cents, up more than 15,000% year over year. After returning some profits yesterday, Barry Silbert (CEO of Digital Currency Group, CoinDesk’s parent company) announced that he would short out Dogecoin.
While some profit-taking was inevitable to prevent a sell-off, the Doge Army needed Musk to do something super big. He did not do it. Though he was charming and more reliable than usual – his mother helping him on stage during the monologue – this was a far cry from the meme-filled, memorable moment the Doge Army wanted. Musk wasn’t very funny either. Because of this performance, Dogecoin would never replace the US dollar as a global reserve currency.
Almost from the moment Musk appeared on stage (not accompanied by 100 Shiba Inus or a scratchy Janet Yellen and Jerome Powell) the price of Dogecoin began to fall. And fall. When “SNL” ended early Sunday ET, Dogecoin was below 56 cents, a drop of more than 20%. By 9 a.m. ET, it had hit 41.8 cents and returned almost all of the previous week’s profits – along with a market cap of more than $ 20 billion – before rebounding somewhat to 48.5 cents at press time, which corresponds to a decrease of 32% in the last week 24 hours.
As Michael Antonelli, market strategist at Baird, put it:
Despite today’s decline, Dogecoin is up more than 10,000% since the start of the year. And the Doge Army has no doubt resigned itself to waiting for the next tweet that will bring the Doge coin to $ 1.00 and beyond.
Hope, like the Doge’s Army, is eternal.