The crypto market is plummeting once again and Doge bulls are among those suffering the most. Dogecoin has crashed all the way to US$0.16, down from an all-time high of US$0.74 on May 8.
The most recent drop in the crypto market seems to be in response to China’s most recent crackdown on trading and mining. Of course, this is not the first time China has tried to “ban Bitcoin”, but because an enormous amount of Bitcoin mining has been based there, news of regulations and restrictions always has a big impact on the market.
The Big Short
However, some analysts – such as ‘Big Short’ investor Michael Burry, who famously bet against the housing market before the Global Financial Crisis – argue that the crypto market has been due for a crash for a while.
All hype/speculation is doing is drawing in retail before the mother of all crashes … When crypto falls from trillions, or meme stocks fall from tens of billions, #MainStreet losses will approach the size of countries. History ain’t changed.
Michael Burry
Doge Bulls Among the Hardest Hit in Recent Crash
It seems that the recent NASCAR Dogecar crash foreshadowed the losses that were to come for the Dogecoin Army. Dogecoin, one of the “meme stocks” that Burry refers to, plunged to 16 US cents, the lowest it has traded since April 23. Dogecoin peaked at 74 US cents on May 8, the same day Elon Musk went on Saturday Night Live to spruik the coin.
Since then, Dogecoin has steadily dropped, losing a huge portion of its former market cap.
Traders Are Frustrated
During this most recent crash, many traders have been taking their frustration out on Reddit and Twitter, where there are large and active crypto communities.
The Dogecoin community has largely remained positive (or blindly optimistic, depending on how you look at it), arguing that this drop in price is a fantastic opportunity to buy more of their favourite coin.
Praying to the Dogefather
It seems though that many within the Dogecoin domain believe that one tweet from Elon Musk is going to reverse the trend and pump Doge to the moon. The problem with “to the moon” narratives is that the price target is ambiguous and ever-changing, based on greed. Something the Dogecoin Army might soon have to consider is that perhaps the 20,000% gains Dogecoin has seen in the past six months was the moon shot they had been calling for.
By Ben Carey – Crypto News Guest Author
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