Dogecoin is one of several cryptocurrency assets that are down in price today, signaling a bearish market overall. The asset is down under ten cents today, trading at $0.09567, a near 5% downtick in 24 hours. DOGE has been one of the most affected tokens amid the widespread downtrend in the crypto and stock markets. The meme coin has dropped to levels not seen since February earlier this year, but why is DOGE down?
One of the biggest contributors to Dogecoin’s recent dip is its strong correlation with Bitcoin. Like many meme coins and other crypto assets, DOGE follows BTC as the latter climbs or drops. Bitcoin is the overall leader in crypto by a wide margin, sporting the largest market cap in the entire sphere. Data from the market intelligence platform IntoTheBlock shows that Dgecoin’s price correlation with Bitcoin is currently at 0.95. This is almost the peak of a strong positive price correlation that any asset can have with the leading crypto.
Also Read: Shiba Inu & Dogecoin Price Prediction For August 2024
Since Bitcoin has crashed 6% today to $54,619.94, the entire crypto market is tumbling. Solana SOL, another leading digital asset, tumbled 21% in 24 hours today as well, showing further crypto concern.
More Factors Causing Dogecoin To Plummet
Furthermore, the US economy has also affected the prices of various cryptocurrencies including Dogecoin. The Fed has yet to decide on an upcoming interest rate cut despite improvements in inflation. This defies projections by crypto experts who were looking for a positive correlation between dropping rates and a bullish market. The July jobs report also suggested that the US economy might be in a worse state than many imagine, with unemployment soaring to 4.3%. Even the stock market is facing considerable losses, with more than $2 trillion being wiped out of the US stock market in the first hour of trading today.
These factors indicate that the economy continues to struggle, much to the disadvantage of the crypto market. Dogecoin has plenty of catalysts for its ongoing decline, and there aren’t many indicators of a rebound incoming. At best, the asset will continue to sit at its current levels and not fall further. Likely though, it may continue to descend further alongside Bitcoin to new 1-year lows. Some analysts may suggest now is a good time to buy the dip of Dogecoin, however, you should be careful and do your research before making this decision to avoid any unwarranted losses.