Dogecoin cryptocurrency investors and traders are anxious. The price of Dogecoin fell sharply after hitting an all-time high.
Quoting Coindesk, Friday (4/23/2021), at 11:00 a.m., Dogecoin is priced at US$0.22 per coin. In the last 24 hours the price of Dogecoin has fallen by 21.36%.
Since the beginning of the year Dogecoin has given a return of 4,202.3% to its investors. Dogecoin's market capitalization is now only US$27.48 billion even though its market capitalization touched US$52.6 billion on April 19, 2021. This means that the market capitalization lost US$25.12 billion (Rp 364.24 trillion) in five days.
Dogecoin briefly recorded an all-time high on April 16, 2021. At that time the price of Dogecoin touched US$0.45 per coin. This price increase makes many investors and traders optimistic that the price will soon touch US$1 per coin.
To pursue this target, supporters of this cryptocurrency created a hashtag #DogeDay with a target price of Dogecoin US$1 on April 20, 2021. But the plan did not go smoothly. Dogecoin price is in a downward trend.
The euphoria of dogecoin price hikes has been responded to cynically by some observers. One of them is David Kimberley, analyst at Freetrade, an investment app in the UK. "The rise of Dogecoin is a classic example of a larger stupid theory at play," said David Kimberley, as quoted from CNBC International, Friday (4/23/2021).
"People buy cryptocurrency, not because they think it has meaningful value, but because they hope others will buy it then the price goes up and afterwards they can sell and make money quickly."
'When everyone does this, the bubble eventually has to burst and you'll be left out if you don't get out on time. And it's almost impossible to say when that's going to happen."
"This is a double case in the crypto market where a small group of players often hold most of the coins in circulation. That means it only takes one person to sell all their holdings for the entire market to collapse."
Dogecoin co-founder Billy Markus also tries to remind people to stay too caught up in euphoria and maintain their common sense while investing in unstable assets such as cryptocurrencies.
"Euphoria is a wonderful remedy, but at least keep paying your bills and feeding your family and having a safe reserve fund," he wrote on his personal twitter account.