- Dogecoin’s price fell by 4.82% to $0.15 on April 27, underperforming in a broader market correction.
- The memecoin has dropped 38% from its month-ago peak, amid disappointing U.S. GDP growth figures.
- Lower open interest and funding rates suggest cautious or reduced trading interest in Dogecoin.
Dogecoin experienced a notable decline over the weekend, with its price falling by 4.82% to approximately $0.15 on April 27. This drop is part of a larger correction within the crypto market, which itself saw a valuation decrease of 2.25% on the same day.
Economic Indicators Impact Crypto Valuations
The slide in Dogecoin’s value coincides with broader economic uncertainty following the latest U.S. GDP data released on April 25. The GDP growth for the first quarter of 2024 was reported at 1.6%, significantly below the anticipated 2.5%. This underperformance has contributed to a cautious sentiment across financial markets, influencing crypto investments as well.
Additionally, the report on personal consumption expenditures, which showed a modest increase of 0.3% in March, did little to alleviate concerns about the economic outlook. This backdrop of slower-than-expected growth and tepid consumer spending has weighed heavily on speculative assets like cryptocurrencies.
Trading Activity and Market Sentiment
The market sentiment for Dogecoin has also seen a shift, reflected by a substantial decrease in open interest—from its local peak of $2.21 billion nearly a month ago to $865.63 million on April 27. Furthermore, the funding rate for Dogecoin has adjusted to 0.0063% per eight hours, signaling a bearish outlook among traders. These metrics suggest that investors are either adopting a more cautious approach due to the uncertainty surrounding Dogecoin’s future movements or there is simply less interest in trading the memecoin with high leverage.
Interest Rate Expectations and Bond Yields
The economic indicators and market reactions have also influenced expectations regarding the Federal Reserve’s monetary policy. Swap traders have notably scaled back their anticipations for Fed interest rate cuts in 2024 to just 33 basis points—a significant revision from earlier expectations of more than six quarter-point cuts. This recalibration has pushed the yield on the benchmark U.S. 10-year Treasury note to 4.739% on April 24, marking its highest level in five months.
