Whales have amassed almost 1 billion Dogecoin (CRYPTO: DOGE) within a span of 48 hours.
What Happened: Cryptocurrency trader and analyst Ali Martinez shared data on X indicating a substantial upswing in Dogecoin purchases. This buying frenzy was triggered by Musk’s recent remarks concerning the potential future slump of cryptocurrency prices.
The data shared by Martinez unveiled that Dogecoin whales have swiftly purchased over 470 million DOGE in the past two days. This surge in buying activity was concurrent with a 20% plunge in the price of Dogecoin, from $0.39620 to a low of $0.31648.
Despite the intense accumulation, the data also revealed significant DOGE sales.
Also Read: Dogecoin To Hit One Dollar Milestone This Year, Says This Analyst
On Friday, cryptocurrency tracker Whale Alert reported two large Dogecoin transactions sent to the U.S.-based crypto exchange Coinbase, presumably for sale.
Elon Musk recently hinted on social media that the price of Bitcoin (CRYPTO: BTC), Dogecoin, and other cryptocurrencies could significantly plummet in the next two years if dollar inflation is resolved.
This statement was made in the context of his role in the U.S. Department of Government Efficiency, which is focused on reducing excessive government spending.
Why It Matters: Despite the significant drop in Dogecoin’s price, these large investors are accumulating more of the cryptocurrency, perhaps anticipating a future rise in value.
However, the data also shows that there have been substantial sales of DOGE. This indicates that while some investors are bullish on Dogecoin’s future, others are taking advantage of the current market situation to cash out.
As Musk’s role in the U.S. Department of Government Efficiency continues to evolve, his comments and actions will likely continue to sway the cryptocurrency market.
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