The Dogecoin whales have been making headlines with a massive selloff recently, causing concern in the market. Notably, two whales have collectively sold over 219 million DOGE to a leading crypto exchange, with experts monitoring the development’s impact on the price. Additionally, the dump also comes a day after Elon Musk backed away from his expectations to reduce US federal spending with the Department of Government Efficiency (DOGE).
Dogecoin Whales Dump 219 Million DOGE
The recent dumping of the Dogecoin whales has caught the eye of investors, with many speculating that the move will significantly affect the DOGE price going forward. According to Whale Alert data, the big investors have dumped 219 million DOGE, worth about $74 million. This has fueled discussions in the wider meme coin community.
Detailed look at whale movement
According to Whale Alert, an investor identified by the wallet address “D7fXy…4QLW3” has moved 106.43 million DOGE, valued at approximately $35.88 million, to the Coinbase exchange. After that, another trader carried out a similar action. In a separate transaction, whales with wallet address “D8hi4..RsF1j” moved 112.62 million coins, worth about $37.99 million, to the same leading crypto exchange.
Notably, these sell-offs came as the Dogecoin price registered a slight recovery today after volatile trading this week. Notably, most of the top meme coins, along with other assets, have registered massive volatility this week. However, these recent dumps indicate a waning appetite for risk among investors towards these assets. Meanwhile, it also comes as Elon Musk has lowered his expectations for the Department of Government Efficiency (DOGE).
Elon Musk lowers DOGE expectations
Elon Musk has downgraded his original estimate of cutting $2 trillion from the federal budget as co-head of the Department of Government Efficiency (DOGE). In one recent interview with Mark PennMusk stated that the $2 trillion figure was a “best-case result” and that he now thinks cutting that amount in half is a more realistic goal.
In other words, Musk’s revised estimate is a significant departure from his earlier claim of cutting “at least $2 trillion” in government spending during a Trump rally in October. This reversal has raised concerns in the crypto community, especially among Dogecoin investors, given Musk’s previous support for the meme coin. Additionally, the department’s acronym also resembles the Dogecoin ticker, which has further added to the discussions recently.
So it appears that these statements from Musk could have affected market sentiment and acted as a catalyst for the recent dump. However, there are several other factors that may have caused the recent Dogecoin election dumps.
How is Dogecoin Price performing?
The DOGE price today fell by almost 2% and changed hands at around $0.33, while its trading volume fell by almost 15% to $3.62 billion. This price decline has been partly due to bearish sentiment in the broader crypto following the release of strong US jobs data and reduced expectations of a Fed rate cut this year.
Notably, the crypto has hit a 24-hour high and low of $0.3385 and $0.3151, respectively. However, despite the increase, CoinGlass data showed that best dog themed meme coins Futures Open Interest fell 1.5%, reflecting bearish market sentiment.
Meanwhile, a recent DOGE price analysis indicates that crypto may soon target the $0.35 mark. Additionally, the leading crypto asset management firm, Grayscale has recently considered DOGE, HBAR and others, as the crypto assets being considered for future investment products. This has further bolstered market sentiment, offsetting recent fears of Dogecoin election dumping.
