Why Is Dogecoin Slumping Again?

Dogecoin is falling along with other cryptocurrencies. As previously reported, cryptocurrencies have been falling after the Federal Reserve indicated on Wednesday that it is preparing to lower interest rates. Though rates have not yet dropped, it is clear to investors that they must hedge against losses, causing issues for the crypto market. In the past 24 hours, Dogecoin has actually gained more than a percent, but it is level against both Bitcoin and Ethereum. In the past 7 days, Dogecoin is down more than 6%, losing almost 13% in the past 30 days and almost 34% since the year began. The global crypto market cap also fell almost 5%, making it that much easier for cryptocurrencies to lose value. Moreover, Dogecoin fell out of the most mentioned tokens on Twitter ($TWTR@US), making it seem as if the token can never hold on to its popularity. Many analysts believe that the token simply consolidated before the Federal Open Market Committee met, according to Benzinga’s Melanie Schaffer. Moreover, investors are split, with Charlie Munger of Berkshire Hathaway ($BRK.A@US) comparing crypto to a venereal disease while Dogecoin co-creator, Billy Markus, is still bullish on crypto. At press time, Dogecoin was trading at 14.5 cents, down more than a percent.