Dogecoin doesn’t seem to be fazed by the market downturn as it keeps hitting new all-time highs. Dogecoin is an altcoin based on a Shiba Inu meme, and has passed $0.40 for the first on Apr. 9, capping weekly gains of 400%.
Dogecoin has achieved a true fashion rags to rags to riches in 2021, wowing pundits and leaving former bagholders weeping. At the moment, the market is going through a flash bear market, which seems not to affect the altcoins moonshot.
Seven days ago, DOGE/USD was trading at $0.070 and currently, the price is at $0.39. Reports indicate an year-to-date gains in excess of 7,500 %, with the pair up almost 18,000% compared to the same date in 2020. The reported gains beat any other price gains including Bitcoin and ETH. However, the question is what will happen to the altcoin next and whether there is an equally reversal on the cards.
The current trading price for DOGE is already lower than its all-time high of $0.445, which was achieved on Apr. 9. The fluctuations in price might be the reason for the worry that the price can plummet back.
On Apr. 1, Elon Musk tweeted that SpaceX was going to put a literal Dogecoin on the literal moon. The tweet led to the rise of the altcoin, which reached a peak of $0.07 before cooling off.
SpaceX is going to put a literal Dogecoin on the literal moon
— Elon Musk (@elonmusk) April 1, 2021
On Apr. 22, a flight is due to launch to Mars, which is said to be the hinted flight to put Doge on the moon. There has therefore been a hashtag #DogeDay trending in the United States on Twitter. Additionally, data from Google Trends indicate that “Doge” is in the process of being Googled more than ever. However, according to other social media metrics, the craze might be fading already on social media.
Apr. 20 is also an improvised red-letter day, also known as Dogecoin Day 4/20, which is insinuated as the day DOGE/USD will finally hit $4.20 per coin. In the middle of the eagerness and enthusiasm in the market, several voices of reason have emerged. Trader Scott Melker is among them, who reminded U.S. traders to be mindful of legal implications even as they were looking to book profits from the trends in Doge.
In his tweet, he warned other traders that the government views DOGE and any other coin as property and every time they spent it, it would be treated as a taxable sale of the coin. This is because buying anything in crypto in the U.S. is considered as selling crypto.
If you believe that $DOGE (or another coin) is the future of money, please remember that the government views it as property and every single time you spend it it’s a taxable sale of the coin.
This is important.
Buy something with crypto in the US = selling crypto.
— The Wolf Of All Streets (@scottmelker) April 18, 2021
Image courtesy of Wikimedia
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