Famed Short Seller Says Bitcoin Hasn't Bottomed Until Dogecoin Slips Below 1 Cent

Famed short seller John Hempton believes that Bitcoin BTC/USD has not bottomed until the price of meme cryptocurrency Dogecoin DOGE/USD falls to below 1 cent.

What Happened: Hempton, the co-founder of investment management firm Bronte Capital, said on Twitter that as long as Dogecoin has a large value, it means speculative mania is “still rampant.” The Australian short seller added that he was concerned about the price of apex cryptocurrency — Bitcoin.

See Also: How To Buy Dogecoin (DOGE) or How to Short Dogecoin

Why It Matters: Hempton, known for his bets against companies such as Wirecard AG WCAGY and Valeant Pharmaceuticals, has been a vocal critic of Dogecoin earlier too.

In a blog post in May, Hempton had compared buying stocks with buying Dogecoin, and noted that the comparison is “not even close.”

See Also: Why Is Dogecoin In Such A Slumber Right Now?

Created in 2013 as a joke for cryptocurrency enthusiasts, Dogecoin has shot to prominence this year, buoyed by endorsements from Tesla Inc. TSLA CEO Elon Musk and other celebrities. However, the meme cryptocurrency is down almost 71.5% from the all-time high of $0.7376 it touched in May at the time of writing.

The broader cryptocurrency market had plunged on Monday after China’s central bank warned financial institutions against dealing with cryptocurrency-related services, but is showing signs of a slight recovery as of Tuesday night.

Price Action: Dogecoin is up more than 2% during the last 24 hours, trading at $0.2084 at press time.

Read Next: Has Bitcoin Found The Bottom At $29,000?