John Hempton, founder and co-owner of hedge fund Bronte Capital, has suggested on social media a hypothesis that said the price of the flagship cryptocurrency bitcoin will only hit a bottom after Dogecoin (DOGE) drops below $0.01.

In a tweet, Hempton said that the cryptocurrency market is in a speculative mania as long as the meme-inspired cryptocurrency still has a large value. The price of top cryptocurrencies including BTC would then keep on dropping until DOGE lost most of its value.

Hempton is notably well-known for his bets against companies such as Wirecard and Valieant Pharmaceuticals, and has been a vocal critic of the meme-inspired cryptocurrency. Back in May, as Benzinga reports, Hempton compared buying stocks to buying DOGE and said the comparison is “not even close.”

Dogecoin was created back in 2013 as a joke inspired by the Shiba Inu dog meme. The cryptocurrency’s community is well-known for taking on philanthropic projects, which included helping charitable organizations.

More recently, interest in DOGE surged thanks to celebrities like Musk, Kiss singer Gene Simmons, billionaire Mark Cuban, Snoop Dogg who openly endorsed it and helped its community grow by joking about it on social media.

The price of Dogecoin hit a new $0.74 all-time high earlier this year, but plunged along with the wider crypto market. It’s still up over 4,000% this year as Musk has been closely following an upgrade to the cryptocurrency that would reduce transaction fees. Per Musk, it’s an “important improvement.”

Looking at DOGE’s price chart, a pseudonymous cryptocurrency analyst and bitcoin bull has predicted that the price of Dogecoin is “programmed” to plunge to $0.05 and that even Tesla CEO Elon Musk would be unable to save it. His prediction is based on a head and shoulders chart pattern.

DISCLAIMER

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

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Photo by “makingmilly” via Pixabay