On Friday, April 16, Dogecoin’s (DOGE) price surged all the way to $0.40 making it the sixth-largest cryptocurrency with a market cap of $50 billion. Wall Street veteran and Galaxy Digital founder Mike Novogratz compared the Dogecoin rally to the GameStop (NYSE: GME) frenzy earlier this year on Wall Street.

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In his interview with Bloomberg Markets, Novogratz said that there’s a lot of “frothiness” within the “altcoin” market. He further added:

It’s a meme coin. There’s a lot of people on the Reddit chat room but Elon Musk and Mark Cuban are pumping it up. It doesn’t really have a purpose. It’s gotta community and maybe they can keep value there. I would be very very very worried if one my friends was investing in Dogecoin at these prices”.

Since the beginning of 2021, DOGE price has surged massively like 3x-4x so far. Moreover, Elon Musk has been quite instrumental in his support for Dogecoin. He was also joined by some popular personalities like Snoop Dog and billionaire Mark Cuban.

After hitting its all-time high yesterday, DOGE price has retraced like 30%. At press time, it is trading at $0.28 with a market cap of $35.8 billion.

Interestingly, ardent Bitcoin critic Peter Schiff comes out in support of Dogecoin pitching it against BTC. Of course, he doesn’t wish to support either crypto of the two.

So far in 2021 #Bitcoin has lost 97% of its value verses #Dogecoin. The market has spoken. Dogecoin is eating Bitcoin. All the Bitcoin pumpers who claim Bitcoin is better than gold because its price has risen more than gold's must now concede that Dogecoin is better than Bitcoin.

— Peter Schiff (@PeterSchiff) April 16, 2021

WallStreetBets and the Dogecoin Mania

As it turns out, the DOGE price shot to the roof on Friday after the Reddit group WallStreetBets started a new thread for crypto discussion on Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE). This is the same Reddit group responsible for pumping GameStop and taking some of the biggest hedge funds for a ride.

But as it turns out, WallStreetBets has now reversed its decision to allow crypto discussions. A moderator said that the decision to discontinue crypto discussions arrived after some top publications like Bloomberg created an unnecessary frenzy. In the thread, the moderator wrote:

“RIP WSB CRYPTO 4/14-2021 – 4/15-2021”: Due to the article that was written @bloomberg who somehow felt that ‘Wallstreetbets Bows to Crypto.’ Crypto discussion is banned indefinitely. I’ve read a lot of dumb articles written about WSB. This one takes the cake. P.S. Like always. Please be respectful”.

About Author

Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.