Why Dogecoin (DOGE) Is Falling

Dogecoin DOGE/USD is trading lower by 3.59% to $0.0647 Thursday morning amid overall weakness in cryptocurrencies. The altcoin may be trading lower in sympathy with the broader U.S. market following better-than-expected US jobs data, which could raise concerns over further rate hikes. Additionally, Dallas Fed president Logan said more rate hikes are likely necessary.

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What Happened?

In the latest June FOMC Minutes, the Federal Reserve highlighted that while job market conditions remain tight, there were some signs of supply and demand in the labor market moving toward a better balance.

These new labor market data points arrive just one day before the highly anticipated non-farm payrolls report, which is set to be released Friday morning...Read More

What Else?

Altcoins like Dogecoin are known for their high volatility. When interest rates rise, it can introduce additional uncertainty and volatility to the broader financial markets. This increased market volatility can have a spillover effect on altcoins, causing their prices to fluctuate more dramatically and potentially leading to a decrease in investor confidence.

Additionally, when interest rates rise, investors may shift their preferences towards traditional investment options, such as bonds and savings accounts, that offer higher yields and reduced risk compared to volatile and speculative altcoins. This could lead to a decrease in demand for altcoins like Dogecoin, resulting in a potential decline in their prices.