Recently, crypto analyst and influencer “Coin Bureau” (“@coinbureau” on Twitter) took a closer look at Dogecoin ($DOGE), and in particular talked about why it pumps.
In a video (titled “Dogecoin: Is The Hype REAL?? This You NEED To Know!!”) released on YouTube channel “Coin Bureau“, the show’s pseudonymous host told the channel’s over 742K subscribers that here are the four reasons for the current “insane demand” for Dogecoin:
- Meme Culture (“simplicity sells”)
- Social Media (“some of the biggest trends for $DOGE have been over on TikTok”)
- Elon Musk (Elon Musk wants to “send $DOGE to the moon”; “you can almost perfectly track the price pumps in $DOGE to his tweets about it”; “a mere tweet of a dog by Elon can make the $DOGE price pump”)
He then went on to explain why people are “so keen to to pump the price of $DOGE.” Here are his theories:
- “Some people are genuinely having fun. They love the community and enjoy the memes… This is the category that I think Elon Musk falls into.“
- “Another type of $DOGE trader are those that are trying to make money on its pumps… There are some in this category who have made millions doing so.“
- “There is, of course, another type of investor that’s unaware of these risks. They think that Dogecoin really could become a global currency and overtake Bitcoin.“
And finally, the crypto analyst ended the video with these closing thoughts about Dogecoin:
“$DOGE is a really fascinating cryptocurrency. I will admit that I never expected it to reach this level, and I have to say that I am impressed. Despite having some pretty simplistic crypto tech, it has captured the attention of millions of users who otherwise would not have been using crypto…
“I also can’t stand here and say that the trend won’t continue. Parabolic price action can be irrational, and I sure as hell won’t be shorting $DOGE… but there will come a time when larger holders take profit, and this will lead to a collapse in price. It’s merely logical… The community is cool and dynamic, and I love its enthusiasm. However, many are investing with real money, and when they lose it, it won’t be a joke.“
According to data by CryptoCompare, Dogecoin is currently (as of 08:4 UTC on April 26) trading around $0.2612, down 4.71% in the past 24-hour period, but up 2,558% in the year-to-date period.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.