Not Funny Enough?
For the last few weeks, people ranging from comedy fans to financial analysts have been anticipating Elon Muskâs performance in the show âSaturday Night Liveâ, a weekly program that makes all of us laugh with skits. However, no one has been following it as much as Dogecoin traders. Yes, Dogecoin traders, and for good reason too. Elon Musk has been vital for Dogecoinâs rapid rise, tweeting pictures of the iconic Shiba Inu dog and simply using the word âDogecoinâ in social media or a statement. Dogecoin was built off a meme, so it was highly likely that it would be used by Musk during his performance, which had many dreaming of how high the price would jump.
I am happy to report to you that he mentioned it. Not once, but twice. In Muskâs monologue, his mom, Maye, made an appearance and a joke did not come until the end, where he said that his Motherâs Day gift for her is Dogecoin. Next, it was on the showâs famous segment, Weekend Update, where Elon acted as the showâs financial expert, Lloyd Ostertag. Hosts Michael Che and Colin Jost were asking him what Dogecoin was, and when he explained that it can be traded for a dollar, Che called it a hustle, which made all 3 of them laugh.
With two references, the price must be at 2 dollars, right? Well, not exactly. After Muskâs first mention of Dogecoin, the price fell from 63 cents to 54 cents, marking a rapid fall. It continued to sell off, with the low being 41 cents, representing a 35 percent decrease. Shorts were rewarded nicely, but many retail investors were confused. The likeliest explanation was not Elonâs comments, but instead something we witness often in the stock market. Iâm sure youâve heard of âbuy the rumour, sell the newsâ. This fits perfectly with what happened as the price of Dogecoin went up by more than 100 percent during the week leading to Muskâs appearance, but when it happened, the price decreased. It occurs in regular assets also, with many companies experiencing this in the weeks leading up to their earnings. If people are expecting something to happen, they will price it into the stock, which has been a common theme for the general market since March. Now that the SNL performance is over, do you think this is it for Dogecoin?  Â
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.