The cryptocurrency market has been facing a downhill situation ever since the Luna crashed. Due to the ongoing Russia-Ukraine war, supply chain disruption in China, aggressive rise in interest rates, inflation, and rise in food, and fuel prices one might wonder if this might lead to recession.
Considering all these factors, the stock market, as well as the crypto market, has been witnessing a huge downfall, this has made the investors sell off their digital assets, which eventually led to the crash of the cryptocurrency market.
On June 19, following Tesla CEO Elon Musk’s declaration that he will keep on supporting and purchasing Dogecoin, the cryptocurrency saw a roughly 10% increase from almost record lows to USD 0.056. This was done to compensate for the declines which had been incurred in the month of May.
Over the course of 24 hours, the coin increased by around 8.5%. It has coincided with a recovery in other cryptocurrencies that are struggling after big losses.
According to CoinDesk, Bitcoin was trading at around USD 18,300 on June 19 after a record-breaking 12-day losing run. On June 18, it had fallen below USD 20,000. As little as USD 17,600 had been paid.
Even Ethereum dropped as low as USD 880 before rebounding to trade at roughly USD 965.
Although its developers created Dogecoin as a joke, the cryptocurrency has grown in popularity since Elon Musk started to support it in 2019.
Market professionals have warned investors to exercise caution when investing in meme coins. They maintain that Dogecoin is still a risky investment with no real use.