Dogecoin Falls After Tesla’s Musk Supports Holders Selling ‘Most Of Their Coins’

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“If the main Dogecoin holders sell the majority of their coins, they will get my full support.” That was Tesla CEO Elon Musk in a tweet on Sunday. “Too much concentration is the only real problem in my opinion,” he added. That was followed a few hours later by this tweet: “I will literally pay real $ if they just annul their accounts.”

The cryptocurrency, which started out as a lighthearted joke in 2013, fell 9% on Monday to 0.057 cents. Since its February 7 all-time high of 0.087, dogecoin is down about 34%, according to data from CoinDesk. By Sunday, it was already out of more than 20% of that high, a drop that meets Wall Street‘s commonly used definition of a bear market. Read: Why is Dogecoin falling? The cryptocurrency is down 20% from its record Monday, but dogecoin is still up around 900% so far this year, benefiting from a general surge in cryptocurrencies, and after a frenzy over stocks driven by Reddit last month spilled into the sector. Even Billy Markus, the co-founder and creator of the volatile cryptocurrency, has said that its stratospheric rise “is not something I can understand.” Meanwhile, Tesla recently revealed that it invested $ 1.5 billion in the number 1 cryptocurrency, bitcoin BTCUSD, -2.24%, and could, in the future, start accepting it as payment for its products. Bitcoin edged close to a record $ 50,000 over the weekend as some traditional Wall Street companies got into crypto. While Musk may appear to be trying to cool the fervor around dogecoin, some credit him with helping to light the fire under the cryptocurrency after a series of seemingly upbeat tweets, like this one from late December: “One word: Doge “. In early February, he inspired another big rally with a series of tweets in which he referred to dogecoin as “the crypto of the people” and shared a picture of a rocket to the moon with one word: Doge. Celebrities like Gene Simmons of the rock band Kiss have also expressed their support for Doge. Read: Should you buy dogecoin? Why Cryptocurrency Prices Are Rising, But Risky Y: Dogecoin? Many ‘retail gamblers are going to lose money‘, says crypto expert