Despite all the expectations raised within the crypto community for his participation in Saturday Night Live. Finally, Elon Musk’s speech on the American TV show did not have the expected effect on the price of Dogecoin. On the contrary, Dogecoin collapsed despite the efforts of Elon Musk, losing almost 30% in value in a matter of hours.
The importance of Elon Musk to Dogecoin
Few can doubt at this stage of the enormous importance that Elon Musk has played in the growth of the price of Dogecoin. And it is that, the position of the second richest man on the planet, defending the cryptocurrency in public through his Twitter account. It has been one of the main catalysts for speculative growth in the price of Dogecoin. Which has increased exponentially in recent months.
Thus, every time Elon Musk tweets messages in favor of Dogecoin, directly or indirectly, the price of the cryptocurrency is affected. As thousands of people around the world pounce on a virtual currency that appears to be backed by one of the most important entrepreneurs of the moment. Driving up the demand for it, and inaugurating cycles of expansion in its price driven by speculation.
This explains the enormous expectations that existed around Elon Musk’s participation in Saturday Night Live this Saturday. Well, for much of the crypto community, the comments that Musk would undoubtedly make in favor of the virtual currency on national television, would be enough to skyrocket the price of Dogecoin once again. Which unleashed a speculative wave in the days before Musk’s participation.
The market collapse
However, this is not what happened. On the contrary, during the moments leading up to his participation, and while speaking on television, the price of Dogecoin suffered one of its strongest declines in recent times. No matter how important Musk’s comments were during the show.
Thus, during a question and answer session with Michael Che and Colin Jost, Musk called himself the ‘Dogefather’, and repeated the famous Dogecoin community slogan ‘To the moon’, after jokingly saying that Dogecoin “is a scam”, as part of a humorous routine.
As this was happening, the price of Dogecoin fell from $ 0.66 to $ 0.50, before falling further to $ 0.43 per Dogecoin. A collapse of 29.5% in the price of the cryptocurrency, from which it has been recovering little by little, trading at the time of writing this article in the order of 0.57 dollars.
Of course, the impact of this collapse on the price of cryptocurrency, rather than economic, is psychological. Well, despite Elon Musk’s best attempts, his participation in SNL and his comments were not enough to push the virtual currency. Thus showing the effects that a speculative excess can have on a cryptocurrency.