Dogecoin Declines Due to Fed’s Rate Decision
- Dogecoin’s 4% decline linked to Fed’s rate decision.
- Meme coins experience significant outflows.
- Whales accumulate despite price drop.
Dogecoin saw a 4% drop to $0.19 following the Federal Reserve’s decision to maintain steady interest rates, impacting high-beta assets with significant outflows.
Aggressive outflows pressure Dogecoin while investors digest macroeconomic signals affecting the broader market, with meme coins like DOGE and SHIB facing heightened volatility.
Dogecoin faced a notable decline, dropping 4% to $0.19 after the Federal Reserve’s decision to hold interest rates. This action caused a broad risk-off sentiment affecting high-beta assets, such as meme coins, and triggered significant outflows.
Dogecoin remains a community-driven project. Neither founders Billy Markus nor Jackson Palmer are actively involved in its leadership. The Dogecoin Foundation now manages stewardship, with prominent advisors like Vitalik Buterin.
The immediate effects were felt across markets as high-beta assets faced a sell-off. Meme coins were particularly hard hit, with selling pressure contributing to Dogecoin’s decline to $0.19. Ali Martinez, Chart Analyst, noted on Twitter, “Whales bought 310 million Dogecoin $DOGE in the last 24 hours”:
Financial reactions included large holders withdrawing DOGE to cold storage, indicating accumulation trends amid a weak price period. The Fed’s rate decision indirectly impacted the market by triggering outflows.
Despite the price drop, analysts noted an accumulation of Dogecoin by whales, purchasing over 310 million DOGE within 24 hours. Motivated by potential macroeconomic shifts, such activity may underscore a future market rebound.
Historical trends in similar Fed events have led to bounce-back rallies in meme coins, including Dogecoin. Technical patterns suggest support near $0.19, which might lead to a rebound if broader risk aversion wanes.
