Dogecoin price slumps during Elon Musk’s appearance on SNL
Dogecoin, a meme-based cryptocurrency, has dropped in value following Tesla CEO Elon Musk’s appearance on Saturday Night Live. New cryptocurrency investors are learning the hard way that markets are forward-looking and that investors typically sell on reports.
On Sunday, Dogecoin lost more than a third of its value after Tesla CEO and cryptocurrency supporter Elon Musk referred to it as a “hustle” during a guest appearance on SNL. Cryptocurrency enthusiasts have been waiting for his response for days, after his tweets earlier this year transformed the once-obscure digital currency into a speculator’s dream.
Elon Musk’s appearance on Saturday Night Live did not result in the price increase that many had hoped for. Dogecoin skyrocketed in the days and weeks leading up to Musk’s much-anticipated stint as host of Saturday Night Live. Dogecoin’s price was about one cent in January. A single Dogecoin was worth over 70 cents just a few weeks ago.
Elon Musk was responsible for a portion of the meteoric rise of DOGE. He started tweeting about Dogecoin in 2021, becoming the most high-profile advocate and assisting in the cryptocurrency’s price rise. It’s hard to link the recent Dogecoin price rise to Musk’s scheduled appearance on Saturday Night Live. Still, many people seemed to be buying the cryptocurrency in anticipation of a potential Dogecoin name drop during his opening monologue, which did happen.
Some financial analysts questioned whether Musk’s comments on the cryptocurrency were appropriate considering his ability to influence its price.“I think he’s having a lot of fun … He can say anything he wants about Dogecoin or cryptos fully aware that just him saying something moves the price,”According to James Angel, an associate professor of financial markets and cryptocurrencies at Georgetown University’s McDonough School of Business.
Some crypto analysts believe that the dogecoin selloff on Sunday was fueled by speculation and that Musk’s actions did not damage the cryptocurrency’s long-term prospects.
“Long–term fundamentals of DOGE are intact. This is a buying opportunity,” said Jehan Chu, managing partner at Hong Kong blockchain venture capital firm Kenetic Capital.
The Dogecoin references continued on Weekend Update, with Elon Musk portraying bowtie-wearing Dogecoin expert Lloyd Ostertag, but the predicted price rises did not materialize. In reality, the exact opposite happened. Dogecoin’s price has fallen from about 66 cents to just below 50 cents in the last hour. The price fell even lower in the hours following the broadcast, to as low as 43 cents, but has since recovered to around 55 cents.
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Given cryptocurrency’s inherent instability and recent price spikes, a crash isn’t unexpected. Still, many expected the price to rise rather than fall in response to Musk’s appearance on Saturday Night Live. However, due to the nature of cryptocurrency, the Dogecoin price could recover even today.
