Dogecoin Selloff Continues Despite Elon Musk's Attempt To Rescue The Coin

What Happened: Crypto markets entered a downward spiral after China’s central bank warned financial institutions against dealing with cryptocurrency-related services.

The selloff that followed saw Bitcoin BTC/USD briefly drop below $30,000, while Ethereum ETH/USD lost support at $2000 and traded around $1,825 at the time of writing.

Some altcoins, however, recorded significantly higher losses than the market leaders, including Dogecoin DOGE/USD, which lost over 27% of its value in the past 24 hours.

Why It Matters: The popular meme-based cryptocurrency was trading at $0.18 at press time, marking a decline of 42% over the past week.

The selloff continued even as Tesla Inc TSLA CEO Elon Musk noted that the Dogecoin network was due for an important improvement.

This is an important improvement

— Elon Musk (@elonmusk) June 22, 2021

Musk responded to a tweet from Dogecoin developer Ross Nicoll, who announced he would be doing another run-through of the “fee reduction code” live on the Dogecoin testnet.

“Not important enough to make up for the 72% plunge in $DOGE since you tried to pump it on SNL. Think of all the money many of your fans lost,” wrote one crypto investor on Twitter.

Read also: Dogecoin As An Asset 'Accurately Reflects' Current Economic Climate, Says FTX CEO

Dogecoin has lost over $70 billion in market value since its peak right before Elon Musk’s SNL appearance. Still, traders believe that even more downside risk is in sight for the meme-based cryptocurrency.

$Doge

Even Elon can't save this with his tweets. He's tried and each time he just created another lower high.

0.05 is programmed. pic.twitter.com/fSsrNvWkGS

— Tyler (@TylerDurden) June 18, 2021