2021-05-12 10:57:03

Dogecoin ($DOGE) Cryptocurrency Price Drop Ahead; Not Bitcoin (BTC) Ether (ETH)

The past few days in cryptocurrencies have been among the most striking yet: a token just days old hit a $45 billion market value, Dogecoin was used to pay for a space mission and Ether scaled new peaks.

As day traders and Wall Street pros strive to make sense of it all, Yassine Elmandjra, crypto analyst at Cathie Wood’s Ark Investment Management LLC, is focused on what the sector represents for him: a new paradigm for transferring and preserving wealth, with Bitcoin and Ether at the vanguard.

“Over a longer-term time horizon we definitely think this is the beginning phase of what’s going to be the birth of an entirely new asset class that we think will be in the trillions of dollars,” Elmandjra said in an interview.

Crypto market value has already topped $2.5 trillion after explosive growth over the past year. Tokens outside of Bitcoin — which has pulled back from a record set in April — have driven the expansion recently. That rings alarm bells for some strategists, who fear that a wider embrace of the sector by retail traders is a sign of potentially unsustainable, stimulus-fueled froth.

Dogecoin is a prime example of the problem for naysayers. The cryptocurrency begun as a joke in 2013 now has a market value of around $65 billion — and has apparently been used to pay for a lunar satellite launch with Elon Musk’s rocket firm, SpaceX.

The token is testament to the power of memes but “much of the value is speculative and we’re ultimately going to see a washout from these prices,” Elmandjra said in the telephone interview Tuesday.

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