Why is Dogecoin crashing? Elon Musk sends token PLUNGING after tweet

Dogecoin (DOGE) has crashed alongside a selection of other cryptocurrencies, including Bitcoin and Ethereum. The three popular currencies have already oscillated across the market, responding to popular feeling and actions of public figures. They all remain exceptionally volatile, especially when nudged by one man in particular.

Why is Dogecoin crashing?

DOGE started 2021 as one of the most popular cryptocurrencies on the market.

It surged in value from obscurity by up to 4,000 percent, with backing from multi-billionaire Elon Musk.

His influence has come as a double-edged sword and is unfortunately working against the market today.

READ MORE: Ethereum to reach 'trillion dollar market cap' - 'exponential growth'

Mr Musk's tweet prompted a furious debate in the comments below, with people taking both Mr Powell and Mr Musk's sides. 

One user said of Mr Musk: "He's certainly smart as hell. But I would have to side with [Mr Powell] on this one.

"Mining facilities are greener already, and continue to be. There's no incentive to mine crypto if you have to pay the proceeds of making it to energy CO's that charge too much."

Another disagreed, saying: "Bitcoin miners have a need to improve the reality of Bitcoin mining, but we lack accurate data.

"If Bitcoin respects the S2F model, energy consumption will be terrible in a few years."

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