The beloved meme cryptocurrency Dogecoin (DOGE) has seen a significant price drop of over 6% in the past day. This downswing can be attributed to the recent pullback in the price of Bitcoin, the largest and most influential digital asset.
When Bitcoin experiences a price correction, as it has by falling from around $66,000 to under $64,000 recently, altcoins like Dogecoin tend to follow suit with corresponding declines. The overall crypto market has contracted by over 4% amidst this latest cooling period.
Market analysts point to a few key factors behind Bitcoin’s retracement, including investor apprehension ahead of upcoming U.S. inflation data and ongoing geopolitical tensions. Reduced inflows into Bitcoin investment products like ETFs have also contributed to lower market liquidity.
Looking ahead, some experts predict Dogecoin could extend its decline to the $0.50 level as traders potentially exit altcoin positions to chase Bitcoin’s next upside move. However, other analysts see Dogecoin’s long-term trend as remaining bullish for now.
As Dogecoin’s price remains closely correlated with Bitcoin’s movements, the meme coin’s future trajectory will likely depend on the broader crypto market’s direction in the coming weeks.
