Here's Why Dogecoin Just Dropped

Motley Fool2021-06-22
People trying to wish Dogecoin to the $1 mark are seeing it pushed in the wrong direction.

What happened

Dogecoin(CRYPTO:DOGE)is trading down about 15% at nearly $0.22 as of 10:30 a.m. EDT. With its price down close to $0.20, the cryptocurrency is a long way from the $1 level many believers were hoping for as the price skyrocketed over the first several months of 2021.

So what

There were two items of news on the cryptocurrency front this morning. The big news is the ongoing campaign China's government is waging againstBitcoin(CRYPTO:BTC). The People's Republic of China (PRC) has been cracking down on Bitcoin miners, driving Bitcoin's price to a level about 50% off its 2021 highs. And now China's PRC-controlled central bank has ordered Chinese banks and payment processors like Ant Group's Alipay to help throttle cryptocurrency trading, according to a report byTheWall Street Journal.

Other news on thecryptocurrencyfront today was thatMicroStrategy(NASDAQ:MSTR)continued piling more Bitcoin onto its balance sheet. But after adding almost $500 million of the digital currency to value its holdings to over $3 billion, the support isn't helping boost cryptocurrency prices. Bitcoin is also down more than 8% today to a two-week low.

Now what

China's crackdown on Bitcoin mining accelerated this weekend, with reports that many mines in the province of Sichuan were shut down. That means about 90% of the country's Bitcoin mining capacity is halted, according to CNBC.

Shuttering Bitcoin mining and an overall crackdown on cryptocurrency trading in China is having ripple effects on other digital currencies like Dogecoin. The campaign to eliminate a use case on cryptocurrencies is why Dogecoin's value is dropping today.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • PPWAPAM_KenZhu
    2021-06-22
    PPWAPAM_KenZhu
    Is a benefit for investor like us to enter at lowest price then sell at higher pricing?
  • Sanushks
    2021-06-22
    Sanushks
    nice time to enter 
  • Titu
    2021-06-22
    Titu
    Ok
  • mikethong88
    2021-06-22
    mikethong88
    ouch
  • MrInvestor
    2021-06-22
    MrInvestor
    To the moon
    • HMHu
      Support the dip!
  • eleele
    2021-06-22
    eleele
    Like and comment pls
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