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An illustration of the Dogecoin meme cryptocurrency.
An illustration of the Dogecoin meme cryptocurrency. | Illustration by Alex Cochran, Deseret News

Dogecoin had such a fast climb. Here’s why it dropped in value this week

Dogecoin saw a massive surge in value this week before dropping quickly on Thursday.

Why did Dogecoin drop fast?

Per Yahoo! Finance, Dogecoin fell close to 11% Thursday morning “as investors cashed in on their recent gains.” Dogecoin climbed to near $0.70 earlier this week, which might have been a time for investors to secure the bag and cash out, CNBC reports.

But, according to Yahoo! Finance, Dogecoin also lost some steam among investors as other cryptocurrencies — like Bitcoin and Ethereum — rose in value. Specifically, Bitcoin jumped 3.7% to be worth $57,013 per bitcoin, while Ethereum rose 3.04% to reach $3,449 per ether.

  • “Ethereum has been rallying in recent weeks as the EIB, the lending arm of the European Union, used its technology to issue €100m in two-year digital notes bonds,” according to Yahoo! Finance.

Dogecoin could spike

Still, Dogecoin doesn’t show too many signs of slowing down just yet. Investors are still looking toward May 8 as a potentially big day for the meme-based cryptocurrency since that’s when Tesla CEO Elon Musk — who has often supported Dogecoin — will appear on “Saturday Night Live.”

  • Social media investors suggest Musk will reference the cryptocurrency, which could drive up its value as more people might invest in it after Musk’s appearance, as I explained for the Deseret News.