In a stunning turn of events, a longtime Dogecoin (DOGE) investor is said to have suffered a significant financial loss following the sale of a ten-year-old stack of the cryptocurrency. After over a decade of holding onto the digital coins, the investor suffered a loss of a million dollars due to unforeseen market dynamics and timing.
The wallet owner, who is also an anonymous investor, bought the Dogecoin stack for the first time in 2014, not long after the cryptocurrency’s debut. Recall that Dogecoin peaked in May 2021, with a coin value of roughly $0.74, encouraging significant profit-taking.
Personal financial demands and the conviction that the market had reached a stage of maturity where the investment could be profitably realized both played a role in the choice. Unfortunately for the owner, the bitcoin market had been particularly volatile in the days before the sale.
Activities in Dogecoin Linked to the Introduction of New Meme Coins
Meanwhile, the prices of meme coins like AMC Entertainment and GameStop (GME) recently boosted. While GME rose from the initial $17 to $64, AMC skyrocketed from $3 to $11. The action by derivative traders is said to be leading to the liquidations, as a way of minimizing losses. The total liquidation for Dogecoin according to Coinglass is calculated at $2.47 million in the last 24 hours.
The total proceeds of the token would have amounted to around $1.25 million, of which around $1.20 million was sold during its peak in 2024. This indicates a future gain of almost $1.20 million from its sales. With the $5000 profit on the investment, the time at which the sales were made explains the difficulty experienced while trying to capture substantial profit in the market.
Experts advise large position holders to consider the possible effects of their trades on the market and investigate ways to reduce price disruptions, such as staggered selling or using over-the-counter (OTC) trading desks.
Dogecoin’s Significant Increase Linked to Its Strong Social Media Base
The said 10-year wallet increased its content to more than $4 million before the owner decided to sell it off. The price of the coin dropped after a long bear run that started in 2022 and ran through 2023. This also affected other cryptocurrencies, compelling their values to drop significantly.
Dogecoin’s promotion power has been based on its huge social media influence, with figures like Elon Musk being the major influencer behind its long positive performance. His endorsement has seen the coin rise to $0.74 on one occasion, with the cryptocurrency community hoping it will hit the $1 price mark for the first time since its inception.
The price of Dogecoin had dropped by over 90% from its former peak, which explains the broader unstable nature of the cryptocurrency market. The coin showed a brief sign of recovery towards the end of 2023. And on 28th October 2023, major wallet owners sold all their Dogecoin assets. The sales were conducted in three transactional phases and raised slightly over $370,000 on 5.39 million units of DOGE at $0.068 each.
Dogecoin Goes Through Correction, Drops By 17.30% in 24 Hours
Reports have it that the price of Dogecoin resurged immediately after the sale was completed. The cost of Dogecoin also increased by 120%, followed by another increase in its year-to-date, which recorded a 60% increase. The coin peaked in 2024 at $0.23, representing a 235% rise from its original selling price.
It is believed that the coin’s value would have risen further by $870,000 had the wallet owners held back their tokens for much longer. As of press time, the price trajectory of Dogecoin is going through a correction session; hence, it is trading at less than $0.15. before now, the coin traded for $0.1491 after increasing by 1.32% on 15th May.
The trading volume of Dogecoin had dropped to $1.64 billion, a 17.30% move in the last 24 hours, after finishing with a market capitalization of $21.53 billion. However, Dogecoin derivatives traders reduced their bet on the Dogecoin features section, which plunged by 2.46% to $ reach$811.06 million.
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