Contrary to the expectations of many investors, the appearance of Elon Musk in the program "Saturday Night Live" (SNL) on the evening of 8/5 caused Dogecoin price "to fall". Specifically, at some point, the price of this digital currency fell by 29.5%, down to $0.49.

According to Coinmarketcap, from nearly $0.7, Dogecoin fell to $0.5 after SNL aired about 30 minutes. Dogecoin's market cap dropped from $90 billion to $68 billion in just 1 hour.

CNBC said the cryptocurrency's price started to recover when Elon Musk mentioned it in the middle of the show. When asked about cryptocurrencies, the Tesla CEO replied: "Recently, the prices of many cryptocurrencies such as Bitcoin, Ethereum and especially Dogecoin have increased".

After that, Dogecoin price increased slightly. By the early morning of May 9, this digital currency was trading at 0.57 USD, down about 17% compared to the initial broadcast of SNL.

Previously, Dogecoin supporters around the world were very excited by the news that Elon Musk joined the SNL program. This sent the Dogecoin price up sharply, from $0.34 on May 1 to $0.69 on the morning of May 8.

Next, Elon Musk posted a photo of himself with two other SNL guests on Twitter and added a picture of the dog Shiba Inu - the symbol of Dogecoin. Immediately, the price of this digital currency reached a historical high of 0.72 USD before cooling down.

At this point, it is unclear what led to the Dogecoin sell-off following Elon Musk's appearance on SNL. According to CNN, perhaps investors want the Tesla boss to say something more motivating for the digital currency.

Dogecoin transactions are so numerous that the Robinhood app announced on the morning of May 9 that they are having problems processing cryptocurrency transactions. They are currently working to find a way to solve the problem.

In SNL, Musk mentioned Dogecoin again at the beginning of the show, when the billionaire introduced his mother as Maye.

"I'm so excited about Mother's Day gift (May 9). I just hope it's not Dogecoin," said Maye. However, Elon Musk "disappointed" his mother when he replied: "Yes, it is definitely Dogecoin".

Elon Musk is a surprising pick from SNL, as the show rarely invites tech entrepreneurs as main guests. Meanwhile, a Wall Street Journal financial writer once commented: "It seems that people are starting to realize that they shouldn't invest solely on a comedy show guest mentioning the property."

From the beginning of the year until now, Dogecoin price has increased by more than 12,000%. This month alone, it rose 800% and became the biggest digital currency on the market. Dogecoin, which started out as a joke in 2013, is now the 5th largest digital currency in the world with a market value of nearly $70 billion, according to Coinbase.

However, many experts have voiced warnings to Dogecoin investors in particular and cryptocurrencies in general. Recently, when asked about the strong bullish trend of cryptocurrencies, Andrew Bailey, who was the CEO of the British Financial Administration, emphasized that they have no intrinsic value. "Buy digital money only when you are ready to lose your investment," he warned.
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