In light of the disappointing U.S. GDP growth figures and their potential impact on the Federal Reserve’s future actions, the price of Dogecoin has seen a decrease, aligning with the broader crypto market’s adjustments.
As of now, the value of Dogecoin (DOGE) is $0.1461, showing a slight increase of 0.2% in the past hour but a decline of 1.6% compared to yesterday. Over the last 7 days, the current value of DOGE has dropped by 8.1%.
The decline in Dogecoin today is part of a larger downward trend in the crypto market, which started after the release of the U.S. gross domestic product (GDP) data on April 25th.
Currently, the global crypto market cap is $2.45 trillion, experiencing a slight decrease of -0.83% in the past 24 hours but a significant increase of 94.04% compared to a year ago. The BTC market cap stands at $1.24 trillion, indicating a Bitcoin dominance of 50.56%.
In the current market, Stablecoins have a remarkable market cap of $161 billion, accounting for a significant 6.58% share of the total crypto market cap.
The U.S. economy’s growth in the first quarter of 2024 was 1.6%, falling short of the expected 2.5%. In March, there was a 0.3% rise in personal consumption expenditures.
Given the lackluster economic indicators, swap traders have adjusted their outlook for Federal Reserve interest rate cuts in 2024. Their expectations have significantly decreased to just 33 basis points, a notable decrease from the initial projections of more than six quarter-point cuts earlier in the year.
Due to expectations of sustained high interest rates, the yield on the benchmark U.S. 10-year Treasury note reached 4.739% on April 24th, its highest level in five months. The open interest (OI) of Dogecoin has seen a significant decline, dropping from its peak of $2.21 billion about a month ago to $774 million as of April 27th. Additionally, the funding rate currently stands at 0.0063% per eight hours.
Based on the decrease in OI and the low funding rate, it suggests a prevailing bearish sentiment in the market. Traders seem to be adopting a cautious approach, possibly due to uncertainty regarding the future price movements of Dogecoin. Alternatively, it could indicate a decrease in overall interest in trading Dogecoin with high leverage.
Is investing in DOGE a good idea?
Around three years ago, Dogecoin started an incredible journey towards reaching new heights. During the meme-stock frenzy, this dog-themed token managed to capture the attention of speculators and reach its highest price of just under $0.74 in May 2021.
Since then, Dogecoin has experienced a decline while the rest of the crypto market is gradually recovering. Currently, the token is 78% lower than its all-time high.
Last year, Dogecoin had a significantly lower performance compared to the top two cryptocurrencies. However, it is leading the pack in 2024, with an impressive 79% increase year-to-date.
Understanding the factors behind these significant price fluctuations in relation to digital assets can be quite challenging. There is a potential catalyst that some experts speculate on: the approval of spot Bitcoin ETFs. If this were to happen, it could pave the way for more approvals in the future.
There is also a possibility that X, formerly known as Twitter, might consider integrating Dogecoin as a payment method within their social news app. From an academic perspective, this could potentially stimulate demand for the DOGE token and lead to an increase in its price.
However, the excitement for this potentially groundbreaking development seems to be fading. In April, Dogecoin experienced a significant decline of 27%. The world of economics is filled with rapid fluctuations, as different trends can quickly rise and fall.
