- Dogecoin exchange rate decreased to 6% compared to the previous trading day.
- The DOGE Token price is trading at $0.3631 and has a market cap of $53.46 billion.
The crypto market is down today due to the Fed's interest rate cut decision at a recent meeting. Bitcoin briefly fell below the $100,000 mark and is now trading at around the $101,341 price range but the price of Ether decreased by 4% in the last 24 hours. Other altcoins such as XRP, BNB, Solana, and Dogecoin are also falling, prompting investors to wonder if the bull rally has ended before the new year.
The price of Dogecoin (DOGE) has already been falling for the past month, regardless of what is happening in the crypto market in general. The recent Federal Reserves decision to cut interest rates by 25 bps and its effect on the crypto market to drop in prices has caused the price of DOGE to fall further today.
Dogecoin fell from around the $0.39 price range to as low as $0.3432 a few hours after the US Fed meeting. It is trading at around $0.3629, down around 6% in the last 24 hours. Even though the trading level increases by 58%, reaching around $6.5 billion, the market cap decreased by more than 5% and stands in the range of $53.42 billion.
Factors causing the price decline of Dogecoin (DOGE).
The US Federal Reserve (Fed) announced an interest rate cut of 25 bps, which led to a lower funds rate to a range of 4.25 to 4.50% in its meeting on Wednesday. In addition, Jerome Powell clearly stated that they are not allowed to own Bitcoin and are also not interested in changing laws at the Fed.
Jerome Powell's statements in the middle of the crypto bull run had affected the market prices to a great extent. Within a few hours, major cryptocurrencies including BTC, ETH, XRP, SOL, etc. began to fall. Dogecoin, which was already in decline, started to go down further today.
Keeping the Fed's influence aside, the price of DOGE was already going down for the past 30 days. The Dogecoin exchange rate is down today against the dollar. According to Santiment, the daily active addresses reached 1.64 million in the last week of November, down to the 70k range this week.
Dogecoin vulnerability leads to network crash
The main reason behind DOGE's declining price trend is the Dogecoin crash, when a hacker exploited a critical vulnerability in its network. It has been about a week since the hack happened and as a result 69% of Dogecoin nodes crashed.
The hack was carried out by the co-founder of Bitcoin sidechain Sequentia, Andreas Kohl, while Tobias Ruck discovered the vulnerability. Coinbase said the crash was not that serious and researcher Tobias Ruck received a $200 reward.
The disclosure of the network's vulnerability, along with the decrease in trading volume and market sentiment, along with the impact of the Fed on the overall crypto market has led to another decline in Dogecoin prices.
The price of DOGE tokens affects other memecoins, similar to how the price of Bitcoin affects other altcoins. After a suit of downward price movement, other memecoins have also started to go down, allowing DOGE to maintain its position as the leading memecoin. Once the bull returns, the tables could turn and we could see a move back in the price of Dogecoin.
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