Dogecoin has plunged more than 70% since Elon Musk’s SNL performance in May, shedding $70 billion in market cap

Elon Musk hosts SNL
Elon Musk hosted the May 8, 2021 episode of ‘Saturday Night Live’.

  • Dogecoin has dropped more than 70% since the hype peaked around the token when Elon Musk appeared on SNL in May.
  • It was the worst-performing major cryptocurrency on Tuesday, as investors fled the asset.
  • Cryptocurrencies have crashed since May after Musk criticised bitcoin and China cracked down.
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Dogecoin continued to plunge on Tuesday as cryptocurrencies tumbled in the wake of a fresh crackdown by Chinese authorities.

The meme cryptocurrency lost 20% over 24 hours to hit $0.19431, according to CoinGecko. That was around 74% lower than its record high of more than $0.70, reached in May amid expectations that Elon Musk would use his “Saturday Night Live” performance to pump the token.

The dogecoin market was worth around $94 billion at its peak, but had dropped to roughly $25 billion on Tuesday, according to CoinGecko – a $69 billion loss.

Dogecoin suffered the heaviest losses of any major cryptocurrency on Tuesday. Yet others didn’t fare much better, with binance coin and cardano off by around 12%. Bitcoin and ether, the two biggest cryptocurrencies, dropped but less sharply.

Cryptocurrencies have fallen dramatically since May after Elon Musk halted payments for Tesla in bitcoin, citing its “insane” energy use, and China started cracking down on crypto “mining.”

Yet dogecoin has been hit particularly hard, with the token plummeting back to earth after skyrocketing in the spring.

Analysts have long warned that dogecoin is a case of speculative mania, with the price influenced more by celebrity-induced buzz than anything fundamental.

Musk was one of the main drivers of the rally in dogecoin. But he hasn’t said anything about doge in a while, and let fans down when he called it a hustle on SNL.

“Many expected Elon Musk’s SNL appearance to send the already-soaring dogecoin even higher,” Michael Kamerman, CEO of crypto firm Skilling, said. “It had the opposite effect.”

“Combined with China’s crackdown on cryptocurrency, the ripple effects are being felt by all digital currencies.” He added: “Whether or not it goes up or down from here is anyone’s guess.”

Nonetheless, dogecoin remained more than 7,000% higher for the last year on Tuesday, according to CoinGecko.

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Bitcoin tumbles 8% after China steps up crackdown on crypto mining, shutting down 26 key sites in Sichuan

China bitcoin mining crackdown Chinese flag cryptocurrencies
China is increasingly cracking down on bitcoin.

Bitcoin dropped 8% on Monday after Chinese authorities ramped up their crackdown on cryptocurrency “mining” over the weekend, with bodies in the Sichuan province ordering 26 of the biggest miners to halt operations.

The world’s biggest cryptocurrency fell to $32,950 as of 6.20 a.m. ET. Bitcoin was down around 49% from April’s record high of close to $65,000, but was still roughly 12% higher for the year.

Other cryptocurrencies also dropped sharply, with ether down around 6% and binance coin roughly 4% lower, according to Coinmarketcap. A broader market sell-off also appeared to be weighing on crypto, as investors moved towards safer assets.

The latest move by Chinese authorities to restrict bitcoin mining came in the southwestern Sichuan province over the weekend, when bitcoin miners were told to “clean up and terminate” their operations. Sichuan authorities said 26 bitcoin mining companies must be closed down on Sunday, according to a notice seen by the South China Morning Post.

Chinese state media outlet Global Times then reported that more than 90% of China’s bitcoin mining capacity was estimated to be closed down, at least for the short term, on Sunday.

Bitcoin mining – whereby computers solve complex puzzles to secure the network and mint new coins – has become a target in increasingly climate-conscious China because of the huge amounts of energy it uses.

Sichuan’s clampdown followed similar moves by authorities in Xinjiang, Yunnan and Qinghai.

“The dominant driver of bitcoin right now is the crackdown on mining & trading in China that began in May,” Michael Saylor, a leading bitcoin bull and chief executive of tech firm MicroStrategy, wrote on Twitter.

“This created a forced & rushed exodus of Chinese capital & mining from the bitcoin network,” Saylor said, describing this as “a tragedy for China and a benefit for the Rest of the World over the long term.”

Jeffrey Halley, senior market analyst at currency group Oanda, said the broader drop in risky assets following the Federal Reserve meeting was also weighing on bitcoin. Stocks have sold off after Fed officials on Wednesday moved forward their estimates of when the US central bank would have to raise interest rates.

“If, as I expect, the global buy-everything unwind continues this week, bitcoin will feel those chill winds as well,” Halley said.

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Ether and other major cryptocurrencies follow bitcoin higher after Elon Musk says Tesla may accept it as payment again

The photo shows physical imitations of cryptocurrency
  • Major cryptocurrencies rose in lockstep with bitcoin after Elon Musk tweeted that Tesla may accept the popular coin as payment.
  • Ether, tether, binance coin, cardano, and dogecoin, all edged higher over the last 24 hours.
  • An expert said she is unsure whether the most recent pop signals a continuing upward trend, but she does know one thing: “Musk is responsible.”
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Major cryptocurrencies rose on Monday, moving in lockstep with bitcoin‘s jump after Elon Musk tweeted that Tesla would accept the cryptocurrency as payment again once mining can be done using cleaner energy.

Bitcoin edged higher Monday following the tweet, inching closer to $40,000, its highest level in two week.

Here’s where the major cryptocurrencies stood in the past 24 hours as of Monday morning ET:

Alexandra Clark, sales trader at GlobalBlock, a UK-based digital asset broker, said that Sunday, when the Tesla chief tweeted, was a turning point for bitcoin, whose movements often influence the broader market.

“A number of analytic tools, including the spent output profit ratio and stock-to-flow, all firmly point to an undervalued bitcoin at current prices, although many analysts are still on the fence when it comes to determining whether the digital asset is ready to continue its uptrend,” she said in a note. “What we do know, is that Musk is responsible.”

The cryptocurrency market has yet to recover from its May crash when it suffered a sharp sell-off, wiping out 47% of its entire value. Most coins have been moving sideways as of late, after peaking to their record highs earlier this year.

Yet a recent finding from crypto-asset broker Voyager revealed that 81% of respondents in a recent survey are more confident in the future of cryptocurrency following last month’s crash. Steve Ehrlich, CEO of Voyager, said this increase was a much higher percentage compared to the last survey conducted in April.

But for Pankaj Balani, CEO at Delta Exchange, the surge is temporary. He said that given the market’s little appetite to own risk, most traders would be inclined to own bitcoin risk rather altcoins.

“We have seen altcoins underperform bitcoins in this bounce and we expect the same to continue over the next few months,” he said. “Capital has been rotating out of altcoins into bitcoin.”

Bitcoin market capitalization dominance, which had hit a low of 40% has already bounced to 46%.

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Bitcoin rises to reclaim the $40,000 level as the cryptocurrency tries to recover from brutal selloff

Bitcoin generic images

Bitcoin gained on Thursday, reclaiming the $40,000-level as the cryptocurrency recovered from a brutal selloff last week that wiped out nearly half of its value from its peak in April.

The price of the largest cryptocurrency by market capitalization rose as high as $40,379 as of 9:29 a.m. ET according to data by CoinMarketCap. It was trading higher by 1.56% to $38,943 as of 1:10 p.m. ET Thursday.

“I think the momentum is starting to move in favor of bitcoin and the crypto markets again as the uncertainty clears,” Ben Weiss, CEO at CoinFlip, a bitcoin ATM operator, told Insider.

Weiss added: “There’s a lot to be bullish on, the upcoming EIP1559 on ethereum, Venmo’s addition of crypto, GameStop’s NFT entrance. I think this sets up bullish momentum.”

Other cryptocurrencies are also edging higher, recovering from a crash last week that wiped out 47% of the market cap for global digital currencies in just seven days.

The price of ether is up by 2.19% to $2,807 while binance coin is also edging higher by 3.93% to $379.

“Cryptocurrencies have reached a position of stability in the markets, as proven from the incredible recoveries posted by all the big cryptocurrencies over the last couple of days after a tremendous bear run,” Peter Jensen, CEO at RocketFuel Blockchain, a payments processing company, said in a statement.

Price volatility, Jensen said, is not a testament to uncertainty. Investors, in fact, have embraced the fluctuation as one of the qualities of cryptocurrencies and have rushed in to buy during the dip, he added.

The cryptocurrency crash last week was due to a confluence of reasons, from China’s reiteration on May 21 that it will restrict mining and trading activities to the Treasury Departments’ decision on May 20 to have any cryptocurrency transfers of at least $10,000 be reported.

Near-term, it is possible bitcoin could test the $32,000 support level again before the next big rally, Charlie Silver, CEO of Permission.io, the team behind altcoin ask, told Insider.

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