Dogecoin Whales Dump 219M Coins As Elon Musk Backtracks From D.O.G.E. Expectations

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Large Dogecoin investors, often referred to as “whales,” have been generating news due to a significant sale of Dogecoin, an action that has raised eyebrows in the market. Specifically, two such whales sold more than 219 million DOGE to a prominent cryptocurrency exchange. Experts are closely monitoring the effects of this mass sell-off on the price. Furthermore, this massive transaction took place just one day after Elon Musk retracted his earlier statements about reducing U.S. Federal spending through the Department of Government Efficiency (D.O.G.E.).

Dogecoin Whales Dump 219 million DOGE

The massive sale of Dogecoin by major investors, or “whales,” has sparked interest among investors, as some believe this action could significantly influence the price of DOGE. As per data from Whale Alert, these big players have offloaded approximately 219 million DOGE, equivalent to around $74 million. This action has ignited conversations within the broader meme coin community.

Detailed Look Into The Whales Move

As reported by Whale Alert, an investor using the wallet address “D7fXy…4QLW3” transferred approximately 106.43 million DOGE, equivalent to around $35.88 million, to the Coinbase exchange. Subsequently, another trader executed a similar transaction. In a separate deal, a different whale (wallet address “D8hi4..RsF1j”) transferred about 112.62 million coins, worth roughly $37.99 million, to the same prominent cryptocurrency exchange.

Significantly, this week has seen substantial volatility in many meme coins, including Dogecoin, alongside other assets. Today, however, Dogecoin saw a minor recovery following turbulent trading. This recent sell-off suggests that investors are becoming less inclined to take risks with these assets, possibly due to reduced enthusiasm from figures like Elon Musk regarding the Department of Government Efficiency (D.O.G.E.).

Elon Musk Lowers D.O.G.E. Expectations

Elon Musk, serving as co-head of the Department of Government Efficiency (DOGE), has revised his initial ambitious plan to reduce the federal budget by $2 trillion. In a recent conversation with Mark Penn, Musk clarified that the $2 trillion figure was an optimistic projection, and he now considers reducing half that amount as a more feasible target.

Essentially, Musk’s revised cost reduction projection is a substantial shift away from his initial statement made at a Trump rally in October about cutting “$2 trillion” in government expenditures. This change has ignited worries within the cryptocurrency community, especially among Dogecoin investors, considering Musk’s past backing for the meme currency. Moreover, the department’s abbreviation shares similarities with Dogecoin’s ticker symbol, fueling additional conversations on this topic lately.

It seems like Elon Musk’s remarks might have influenced the market’s perception and potentially sparked the recent sell-off. Yet, it’s important to note that various other factors could be responsible for the recent massive sell-offs of Dogecoin by large investors (whales).

How’s Dogecoin Price Performing?

Today, the price of Dogecoin increased by more than 2% and was traded at approximately $0.334. At the same time, its trading volume decreased by around 11% to reach roughly $3.46 billion. It’s worth noting that Dogecoin reached a 24-hour high of $0.3385 and a low of $0.3151 during this period. Despite the price surge, data from CoinGlass indicates that the open interest for Dogecoin futures contracts dropped by about 1.5%, suggesting a bearish outlook in the market.

Currently, an analysis of Dogecoin’s price shows it might aim for around $0.35. Additionally, Grayscale, a prominent crypto asset management company, is considering Dogecoin, HBAR, and others for potential future investment products. This move has boosted market confidence, counteracting concerns about recent large-scale Dogecoin transactions.

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2025-01-10 16:56