Dogecoin Selloff Continues Despite Elon Musk's Attempt To Rescue The Coin

What Happened: Crypto markets entered a downward spiral after China’s central bank warned financial institutions against dealing with cryptocurrency-related services.

The selloff that followed saw Bitcoin BTC/USD briefly drop below $30,000, while Ethereum ETH/USD lost support at $2000 and traded around $1,825 at the time of writing.

Some altcoins, however, recorded significantly higher losses than the market leaders, including Dogecoin DOGE/USD, which lost over 27% of its value in the past 24 hours.

Why It Matters: The popular meme-based cryptocurrency was trading at $0.18 at press time, marking a decline of 42% over the past week.

The selloff continued even as Tesla Inc TSLA CEO Elon Musk noted that the Dogecoin network was due for an important improvement.

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Musk responded to a tweet from Dogecoin developer Ross Nicoll, who announced he would be doing another run-through of the “fee reduction code” live on the Dogecoin testnet.

“Not important enough to make up for the 72% plunge in $DOGE since you tried to pump it on SNL. Think of all the money many of your fans lost,” wrote one crypto investor on Twitter.

Read also: Dogecoin As An Asset 'Accurately Reflects' Current Economic Climate, Says FTX CEO

Dogecoin has lost over $70 billion in market value since its peak right before Elon Musk’s SNL appearance. Still, traders believe that even more downside risk is in sight for the meme-based cryptocurrency.