Eight-year-old cryptocurrency Dogecoin has printed a new all-time high of $0.0264 after it was touted by popular subreddit Wall Street Bets.
Wall Street Bets has been under intense scrutiny from regulators and policymakers in the United States after it appeared to artificially inflate the price of GameStop (GME) and AMC over the past week.
The subreddit now has more than 4.2 million members with today’s daily discussion thread attracting 47,500 comments.
The group decided to switch its focus from stocks like GME and AMC to opt for lesser known cryptocurrencies like Doge after buy orders of the aforementioned stocks were halted on Robinhood.
There have been reports in the past hour stating that Robinhood has now also halted buy orders for Doge after it surged by more than 200% in 24-hours.
Dogecoin has been a longstanding ‘meme’ among the cryptocurrency community, with Tesla CEO Elon Musk joking that he was the Doge CEO on Twitter last year.
While the ferocious rally of stocks like GME over the past few days has attracted attention from the retail market, institutional players are feeling the squeeze after holding short positions.
New York-based hedge fund Melvin Capital held a high profile short position on GME before the rally, eventually being forced to close out following a $3 billion cash injection from Citadel and Point72.
It’s worth noting that the recent surge in the prices of GME, AMC and DOGE are not based on any fundamentals, it is driven solely by social media hype and a flurry of buying from retail investors on apps like Robinhood.
If regulators step in and prevent buy orders of lower market cap stocks, it could cause a correction. Although cryptocurrency exchanges like FTX have already listed AMC, GME, NOK and BB over the past 24-hours to ensure the market can be traded continuously.
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Disclaimer: This article is not intended as financial advice. Cryptocurrencies are extremely volatile assets that should be treated with caution. The author of this article does not own, or have a vested interest, in any of the aforementioned assets.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.