Dogecoin (DOGE) is now being traded close to $0.56 after reaching an all-time high above $0.73 per coin. The digital currency remains among the largest in the cryptocurrency market with a valuation of $73.8 billion dollars and it is still larger than XRP and Tether (USDT). However, it seems that Elon Musk’s comments affected the digital asset.
Is Dogecoin a Hustle?
During the Saturday Night Live (SNL) sketch show, Elon Musk said that Dogecoin “is a hustle.” Everyone in the cryptocurrency market holding some Dogecoin was interested in what Elon Musk had to say.
However, the comments were not received positively by the audience or the crypto community. Indeed, Dogecoin fell to $0.50 a few minutes later, representing a price decrease of over 25% in just a few minutes.
It is worth mentioning that Dogecoin has been one of the most hyped digital currencies in the last few months. The virtual currency moved from below $0.01 to above $0.70 in just a few months. Investors that placed their bets on the virtual currency have earned tons of money over the course of the last few months.
Nevertheless, it is worth mentioning that holding Dogecoin for the long term might not be one of the best investment strategies. Dogecoin has been always considered a meme cryptocurrency that moves on specific occasions such as when a recognized figure comments about it.
Robinhood, one of the most used platforms to trade virtual currencies, experienced some outages when investors started selling their coins. Volatility and large volumes are usually not good for trading platforms. Most of them face issues when there is more volatility and higher volumes.
Several investors might now be moving their investments from DOGE to other digital assets such as Litecoin (LTC), Bitcoin (BTC), Ethereum (ETH) or Bitcoin Cash (BCH), among others. We are still in a bull market and this can be seen in how Ethereum has been expanding over the last few months.
At the moment of writing this article, Bitcoin, Ethereum and Binance Coin (BNB) are not registering large losses or gains. Thus, they are operating stably if compared to 24 hours ago. It is worth taking into consideration that Bitcoin and many other virtual currencies have been massively expanding in the last months.
It is just a matter of time to see whether we continue moving higher or if we have already seen the top. One thing is clear, companies continue investing in Bitcoin.