Bloomberg Cautions on Dogecoin’s Market Impact

Senior Commodity strategist Mike McGlone has cautioned that meme cryptocurrency Dogecoin (DOGE) could destabilize financial markets, similar to past downturns like the Great Depression in 1929 and the Dot-com bubble of 1999.

In a post on X dated March 17, McGlone analyzed Dogecoin’s market cap trajectory alongside Bitcoin (BTC) and gold, suggesting inherent vulnerabilities in these assets. He likened Dogecoin’s rise to previous speculative bubbles that led to significant market downturns.

McGlone mentioned that even if Dogecoin were to lose 99.9% of its market cap, it would still be considered “silly expensive,” emphasizing its perceived lack of utility. “Silliness of 1929, 1999? Dogecoin, the joke coin, could lop off three zeroes from market cap and still be silly expensive. The chart may show what it might mean for Bitcoin/gold,” he stated.

Dogecoin’s Evolution

Over the years, Dogecoin has emerged as a notable player in the cryptocurrency space, with the community striving to enhance its utility through various use cases, including payments. Notably, figures like Tesla CEO Elon Musk have greatly influenced DOGE’s rise.

McGlone expressed concerns that Dogecoin could impact Bitcoin and gold, both perceived as safe havens. His warning reflects broader anxieties about the crypto market’s vulnerability to crashes amid a shifting regulatory environment and uncertain macroeconomic conditions.

Furthermore, invoking the 1929 stock market crash and the dot-com bubble raises concerns about unchecked speculation potentially triggering a financial crisis, with Dogecoin’s valuation possibly serving as the tipping point.

Contrasting Crypto and Gold Performance

McGlone’s warning comes as cryptocurrencies and gold display contrasting performances. Bitcoin, trading at $82,812, has seen minor consolidation, up 1.4% over the past week. Meanwhile, Dogecoin is experiencing bearish sentiment, valued at $0.16, marking a 3% increase over seven days.

Gold, however, is trading at a new all-time high above $3,000, reflecting its safe-haven status amid geopolitical complications. As of now, it stands at $3,023, up nearly 4% in the last week.

The precious metal’s surge has been spurred by ongoing geopolitical uncertainties and concerns over President Donald Trump’s tariffs. McGlone previously warned that rising gold prices might lead to a potential Bitcoin price crash, indicating a shift in demand from risk assets to safer havens.

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