If you don’t follow the cryptocurrency market, you’re missing out with all of the Elon Musk-Bitcoin news, which sent prices of the world’s top crypto spiraling. You’ve also missed out on the Dogecoin trend…
Bitcoin is down over 20% the past week alone, ever since the Tesla CEO tweeted his company will no longer accept it as form of payment for its cars.
Musk hosted “Saturday Night Live” on May 8. And he’s been pumping the Dogecoin trend for some time now.
For the newcomers, Dogecoin is a cheap cryptocurrency that actually started in 2013 as a joke.
That’s right… it’s nothing more than a meme coin. At the beginning of 2021, it was trading around 4 cents a coin.
As you can see, back in January, the Dogecoin trend started moving up. And in April, it just exploded. Musk has been tweeting about it nonstop, even mentioning it on SNL. And Dallas Mavericks owner and “Shark Tank” star Mark Cuban has also talked about it.
After starting April at 6 cents, it shot up to 75 cents a coin right before Musk went on SNL. Of course, it’s fallen to around 50 cents since then, so anyone who got in at 75 cents is sitting on a big loss…
So we need to put things in perspective here.
First, can something like Dogecoin really take off? Yes, it can. But that doesn’t mean it will stay hot. There’s a big difference between Dogecoin and most other cryptos because it started as a joke.
It’s just not the same as things like Bitcoin. It’s hot now, but it could easily roll over and not be hot anymore. You see these fads come and go in investing all the time.
Nobody knows what’s going to happen tomorrow. I don’t even know what I’m having for dinner tonight. It could go to the moon, as they say, or it could roll over and be worthless.
All I know is risk vs. reward. Are we early in this Dogecoin trend, or are we late? Well, when it goes from 6 cents to 75 cents in a matter of weeks…
One of the oldest adages on Wall Street is to buy the rumor and sell the news. That simply means when you hear the rumors, that’s when you want to get in on a stock. Then when it’s all over the news and everyone knows about it, that’s when it’s time to sell because you’re basically at or near the short-term top.
And that’s exactly what happened with the Dogecoin trend. And it’s happened over… and over… and over… and over as history repeats itself.
So what’s next for Bitcoin?
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