Dogecoin Depression, what could be the underlying reason?

  • On Monday, DOGE slid after the Shiba Inu mascot’s truck crashed with a wall
  • A lack of recent meme-tweets from celebrity Dogecoin supporter and Tesla Inc (NASDAQ: TSLA) CEO Elon Musk also worked against DOGE at the time of publishing
  • The major cause of the ongoing decline in cryptocurrency prices is the decrease and shutdown of crypto miners in China

DOGE dropped 73.19 percent after achieving an all-time high of 0$.74 last month. Even the presence of a Dogecoin on the NASCAR circuit had no effect on the meme coin’s prospects. DOGE slid after the Shiba Inu mascot’s vehicle collided with a wall on Monday. DOGE’s depreciation follows a broader bear market in the cryptocurrency industry, which saw the price of Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETC) plummet (CRYPTO: ETH). Meanwhile, Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, dubbed DOGE a Ponzi scam in a LinkedIn comment. The conversation took place on Coinbase Global Inc’s (NASDAQ: COIN) Chief Legal Officer Paul Grewal’s LinkedIn profile.

Another reason working against DOGE at the time of publication was the lack of recent meme-tweets by celebrity Dogecoin backer and Tesla Inc (NASDAQ: TSLA) CEO Elon Musk, who had otherwise been a significant motivator for the cryptocurrency’s price growth. Musk’s sole recent tweet about Dogecoin was when he described a fee reduction upgrade as a major enhancement. Bitcoin hit a two-week low as China tightens its grip on cryptocurrencies. The decline comes as China tightens its grip on cryptocurrencies, with officials in the southwest province of Sichuan ordering bitcoin mining operations to shut down on Friday.

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Mark Cuban, the owner of the Dallas Mavericks, recently took to Twitter to explain why cryptocurrency prices have dropped in recent weeks. It was an example of the “Great Unwind,” he remarked. His answer is chock-full of cryptocurrency-related jargon. However, it appears that investors are withdrawing their profits. He stated that “new money” will contribute to the rise of cryptocurrencies. He used rocket emojis, implying that “new money” will transport cryptos to the moon. Elon Musk, the CEO of Tesla and a long-time admirer of Dogecoin, tweeted about it over the weekend. He tweeted a purple photo with the words “Cyberviking” and the remark “how much is that Doge in the window?” This is another instance of Musk praising cryptocurrencies, which might help the currency gain traction. Dogecoin’s value rises as a result of social media buzz.

Bitcoin fell over 10% on Monday, while other digital currencies such as Ether fell as much as 12% in the previous 24 hours, going below $2,000 for the first time in nearly a month. Dogecoin has also dropped by 12% to about $0.22. China has ordered Alipay and local banks to refrain from providing services related to virtual currency trading. The People’s Bank of China stated in a statement that the banks were also instructed to cut down payment methods for crypto exchanges and over-the-counter platforms. 

Thus, the main reason for this continuous fall in the crypto prices is directly linked to the reduction and ceasing of crypto mines in China, due to which there is a continuous fall. As we know that China happens to be the biggest miners of crypto, and have mined about 65% of the total crypto mined in the world in the last year. 

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Steve Anderrson
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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