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Why is Dogecoin dropping? Crypto plunges 26 percent over the last day

Daily Express logo Daily Express 21/06/2021 Katie Sewell
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The popular meme-based cryptocurrency has suffered in recent days, along with several other cryptocurrencies across the board. Although cryptocurrencies are known for their volatility, prices have been particularly rocked in recent days. One of the biggest cryptocurrencies, bitcoin, has plunged by -8.26 percent in the last 24 hours to $32,484.73 (£23,322.41), according to CoinDesk.

Why is Dogecoin dropping?

The value of several major cryptocurrencies dropped on Monday after China announced another crackdown on cryptocurrency trading.

Power was severed to bitcoin mines in the Sichuan province of China over the weekend, which is one of China's largest producers of the cryptocurrency.

Bitcoin dropped by almost 10 percent on Monday following the activity in China, according to Reuters.

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graphical user interface: Why is Dogecoin dropping? © GETTY Why is Dogecoin dropping? a hand holding a cellphone: Why is Dogecoin dropping? Cryptocurrency site © GETTY Why is Dogecoin dropping? Cryptocurrency site

China's central bank said on Monday it had summoned some banks and payment institutions recently, urging them to crack down harder on cryptocurrency trading.

As well as the bitcoin market, the situation has also impacted the value of other cryptocurrencies like Ethereum, as well as other coins like Dogecoin.

This is not the first time in recent months that decisions made by China about cryptocurrency have caused markets to plummet.

Last month, China's State Council announced its plans to block mining and trading of cryptocurrencies, causing prices to drop.

Why is Dogecoin dropping? Dogecoin © GETTY Why is Dogecoin dropping? Dogecoin

China has subsequently issued bans on cryptomining in hubs such as Xinjiang and Inner Mongolia.

Cryptocurrency-linked social media accounts and exchange sites have also been blocked by authorities.

The latest crackdown on bitcoin caused cryptocurrencies across the market to drop on Monday, including Dogecoin.

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graphical user interface, chart, line chart: Why is Dogecoin dropping? Price of Dogecoin over the last week, as of June 21 © COINDESK Why is Dogecoin dropping? Price of Dogecoin over the last week, as of June 21

How much is Dogecoin worth?

Dogecoin has previously benefited from shoutouts from Tesla CEO Elon Musk, who once tweeted he wanted SpaceX to put a "literal Dogecoin on the literal moon".

But according to CoinDesk, Dogecoin has plummeted significantly over the course of the last few days.

As of Monday night (BST), Dogecoin was valued at $0.206120 (£0.147984), a drop of -26.31 percent over the last 24 hours.

Dogecoin also had a market cap of $26.79 billion (£19.23 billion), according to the crypto site.

CoinDesk data shows the value of Dogecoin has plunged over the course of the last seven days.

On June 14, Dogecoin was priced at $0.323276, but by June 21 this had dropped to $0.211884.

The information in this article does not equate financial advice. Anyone considering investing in cryptocurrency should understand the risks involved.

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