Why did the Dogecoin price tumble 12% in August?

The Dogecoin (CRYPTO: DOGE) price is up 2.5% over the past 24 hours, currently trading for 6.25 US cents.

At that price, the crypto, which was created as a joke and features a Shiba Inu as its mascot, has a market cap of US$8.3 billion. This makes it the tenth biggest crypto in virtual circulation, according to CoinMarketCap. And that’s after falling 64% year to date.

There’s today’s price action for you.

Now, how did the Dogecoin price hold up in August, a month that saw the tech-heavy NASDAQ fall 4.6%?

Dogecoin price battered by rising interest rate outlook

Depending somewhat on your time zone, the Dogecoin price stood at 7.09 US cents as we ticked our calendars over to August.

By the time the clock struck midnight on 31 August, the dog-themed crypto was trading for 6.29 US cents, down 12.3% for the month. While nothing to cheer about, that performance did edge out the 14.8% losses posted by Bitcoin (CRYPTO: BTC) last month.

Investors holding the crypto throughout the month would have had to stomach plenty of volatility. Though that’s nothing new in the crypto sphere.

August saw the Dogecoin price trade as low as 6.02 US cents and as high as 8.86 US cents. A far cry from the all-time high of 73.76 US cents it hit on 8 May 2021.

As with Bitcoin and most other cryptos, the Dogecoin price struggled last month as investors were met with the reality that inflation across most of the globe isn’t likely to return to within central banks’ target ranges in quick order.

With the United States Federal Reserve and other central banks, including the Reserve Bank of Australia, flagging additional sizeable rate hikes in the months ahead to curb soaring prices, risk assets were broadly sold off across the board.

Dogecoin was no exception.

The post Why did the Dogecoin price tumble 12% in August? appeared first on The Motley Fool Australia.

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More reading

• The Bitcoin price tanked 15% in August. Here’s why
• Why the Bitcoin price was struggling today
• Why Ethereum, Dogecoin, and Solana lost altitude on Thursday
• Bitcoin price resilience ‘could be a promising sign’: expert
• Can the Bitcoin price reach $100,000?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://www.fool.com.au/2022/09/03/why-did-the-dogecoin-price-tumble-12-in-august/