Why Baby Dogecoin Is Getting Hammered

Baby Dogecoin BABYDOGE/USD is trading lower by 11.47% to $0.000000002898 Friday afternoon. The altcoin is trading lower in sympathy with the broader cryptocurrency sector following key U.S. economic data. The U.S. Services PMI rose from 52.6 points in March to 53.7 points in April — above expectations of 51.5.

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Cryptocurrencies have also been seen by some investors as a speculative hedge against inflation and the Fed's plans to curb inflation could weigh on the broader cryptocurrency sector.

"The latest survey adds to signs that business activity has regained growth momentum after contracting over the seven months to January," Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said. "The latest reading is indicative of GDP growing at an annualized rate of just over 2%."