• May 04, 2021

Dogecoin’s chances of hitting $5 in 2021 near 20% as price hits record high.

According to bookmakers, the probability of dogecoin hitting $5 in value this year is 17 percent, as the meme coin's price rises due to social media support.

As of 1:30pm BST on 4 May, Dogecoin had risen more than 39% in the previous 24 hours, reaching a new all-time high of $0.54. Retail investors have been flocking to the cryptocurrency after billionaires Mark Cuban and Elon Musk voiced their support for it.

However, esports site Unikrn's betting odds showed that dogecoin is more likely to fall than rise. By the end of 2021, the meme coin has a 33 percent — or one in three — probability of being priced at $0.10 or less.

Meanwhile, chances suggest that bitcoin, the world's largest cryptocurrency by market capitalization, is more likely to fall to $10,000 this year than to cross $100,000.

According to Unikrn data compiled for Financial News on 4 May, Bitcoin has a 20% probability of reaching $100,000 in 2021, but a 27% chance of dropping to $10,000 or lower.

As other cryptocurrencies such as dogecoin and ether gain prominence, the cryptocurrency's fortunes are fading. Bitcoin's chances of hitting $100,000 were 36 percent two months ago.

Dogecoin's attraction, according to Professor Carol Alexander, a finance lecturer at the University of Sussex, is its "potential for big returns, which can't be found anywhere at the moment."

Dogecoin gives traders the ability to purchase entire coins for small amounts due to its low valuation in comparison to bitcoin, which was hovering about $56,000 on 4 May. However, it has a high chance of losing all of its value quickly due to its extreme volatility.

Alexander expressed her hope that dogecoin returns to its roots as a means of goodwill, noting that the cryptocurrency's two owners had already used it to fundraise for charitable causes.

Musk has only seen Dogecoin as a game since taking over as CEO in 2017,” she said. “If he wants dogecoin to have some economic value at all, he must return it to its benign roots.”