The stock market went to a rough start of 2025. Of March 4, S & P 500 and Nasdaq composite They were reduced by 1.5%and 5.2%.
Generally speaking, when the stock market acts badly, investors can transfer their funds to alternative property such as goods or crypto currency. However, this year, the crypto markets were not too lush. Best two crypto currency, Bitcoin and EthereumThey fell by 7%and 36%and others followed.
Joining his cohorts in a cryptocurrency sale Dogecoin (Crypto: Doge). After increasing 251%in 2024, its price reached 36%this year.
But it is Purchase of smoke In Dogecoin now a smart idea?
Although Dogecoin’s price has increased significantly last year, the chart below should help to paint a clearer picture of what really happened to the crypto currency. As you can see, the vast majority of Dogecoin’s gains in 2024 have occurred during the last two months of the year.
Dogecoin -growing prices can be traced in the presidential election. During the campaign of the then candidate Donald Trump, Tesla Executive director Elon Musk appeared as a major surrogate and mass donor to a Republican candidate. One of the factors that influenced Musk’s relationship with Trump was their common opinion that the federal budget had become too bloated. As a result, Musk floated with the idea of creating a team focused on recognizing wasteful spending that could be reduced.
The name he and Trump gave in that initiative: Government Efficiency Department (Doge).
If you look carefully at his price ticket, you will notice that the price of Dogecoin actually began to fall at the end of 2024. From December 1, it decreased by 53%.
If you have been following Musk at all before the election, you may know that the entrepreneur in the past jokingly supported Dogecoin on several occasions. It is likely that Musk’s comic affinity toward him played a role when he was chosen to initiative to reduce costs. But at the end of the day, Doge is not just smart acronym. There is no tangible relationship with a cryptic currency.
Moreover, Dogecoin remains a meme coin with little or no use in the real or digital world. In my opinion, the sale that began in December was the first domino to fall. As investors began to think about the fact that the coin rose on a pure Hype that was not associated with any real worthy catalysts, his bubble began to blow out.
