Why Dogecoin Is Getting Hammered
Shares of several popular altcoins, including Dogecoin DOGE/USD, are trading lower Monday in sympathy with apex cryptocurrency Bitcoin BTC/USD and second-largest market cap crypto, Ethereum ETH/USD.
The broader cryptocurrency sector was lower throughout weekend trading, and volatile throughout Monday’s trading session amid ongoing U.S. economic concerns and ahead of this week’s CPI report.
Morningstar reported the analyst consensus expects CPI to come in at elevated levels at 8.8%, which is slightly higher than the 8.6% reading in May. Stocks across sectors and cryptocurrencies fell in June amid overall market weakness after CPI data showed prices rose in May. Rising inflation has caused concerns about a slowdown in economic activity, which could impact the broader crypto sector.
In June, according to the Bureau of Labor Statistics, the all-items CPI figure increased 8.6% for the 12 months ending May, the largest 12-month increase since the period ending December 1981.
Recent weakness for cryptos is also in sympathy with the overall stock market as traders continue to digest recent Federal Reserve rate hike announcements. Cryptocurrencies have 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.
According to data from Benzinga Pro, Dogecoin is trading lower by 6.45% to $0.06177 Monday evening.