Why is Dogecoin going down? Dogecoin falls 22 per cent over a period of 24 hours
Over the past 24 hours, the price of Dogecoin has gone down from $0.28 to $0.20. Read on to know why is Dogecoin going down and crypto market is falling.
- Tech News
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In the span of a few months, Dogecoin went from being a joke to a 90 billion dollar digital asset at the height of its price and popularity. Dogecoin hit its maximum price just a month ago, on May 10, reaching a high price of 73 cents. Since then the crypto markets experienced a heavy crash on May 19 and most coins went down by about 50 per cent, including Dogecoin. However, over the past 24 hours, the price of Dogecoin has dropped by more than 22 per cent, a staggering drop, even in the crypto market. Read on to know why is Dogecoin going down.
Why is Dogecoin going down?
Over the past 24 hours, the price of Dogecoin fell from a high price of $0.28 to a low point of $0.16. A significant drop like this in the Dogecoin price hasn't been seen in months. At the time of writing the price of Dogecoin has recovered to an extent from its lowest point and it sitting at $0.20, which is still far below its all-time high price of $0.73. Over the past couple of days, the whole crypto market crashed as Bitcoin went tumbling down. The reason behind this sudden market crash and Dogecoin falling was a direct result of China's continued crackdown on Bitcoin mining and cryptocurrency trading in the country.
As per a report by the Wall Street Journal, China's Central Bank has ordered the major banks in the country to throttle cryptocurrency trading. The government of China has also been cracking down on large Bitcoin mining farms. As per a report by The Motley Fool, China has also shut down the mining province of Sichuan, which contributed to the majority of China's Bitcoin mining capacity. As China continues on its Bitcoin crackdown and the mining rates drop, the Bitcoin network keeps getting more congested, which directly leads to a crash in price, as the transactions cannot go through quickly. Moreover, China's continued ban and the falling price of Bitcoin has scared many investors who have withdrawn their investments in order to not lose any more money.
The market crash is directly responsible for the crash in the price of Dogecoin. Many crypto experts already believed that the price of Dogecoin has been inflated to an extent. As Dogecoin is an inflationary coin with an ever-increasing supply, over time the price of Dogecoin is inevitably going to fall. This market crash just fast-forwarded the process, as a large number of people sold off their Dogecoin holding to avoid even more losses. Stay tuned for more updates on cryptocurrencies.