This year has been quite good for the crypto market in general, Bitcoin has continuously set new highs, while President Donald Trump is promoting crypto-friendly policies, including the establishment of a legal framework for stablecoins.
However, Dogecoin (DOGE) – the famous meme coin that exploded right after Donald Trump's election victory last November – is having a bleak year.
Since January, DOGE has lost more than 30% of its value, while Bitcoin has increased by about 18% and the S&P 500 has risen nearly 9%. Although it still holds the 8th position on the ranking with a market capitalization of 32 billion USD ( as of 2/9), it is clear that DOGE is gradually losing its appeal to investors.
Low Interest Rates – The Key to Helping Dogecoin Recover?
Dogecoin is inherently a highly speculative asset, heavily dependent on the risk appetite of individual investors. Currently, the demand for "risk acceptance" is not very strong. While Bitcoin – the safest and most popular coin – is still on the rise, riskier options like Dogecoin or Shiba Inu ( have decreased by more than 40%) and continue to weaken.
One important factor that could help the meme coin group recover is the interest rate policy. If the U.S. Federal Reserve (Fed) lowers interest rates, the borrowing costs for businesses will decrease, inflation will be controlled, and investors' risk appetite will increase.
According to the CME FedWatch tool, the probability of the Fed cutting interest rates this month is at 92%, with nearly a 50% chance of an additional cut in October. If multiple rate cuts occur, it could provide the necessary boost for Dogecoin and other meme coins to rebound this year.
Risks from a Larger Economy
Although low interest rates benefit DOGE, the overall economic picture remains a more important factor. Dogecoin hit a yearly low in April - coinciding with the time the US announced retaliatory trade tax measures.
If the US economy shows signs of recession or slow growth, investors will be more cautious. In this context, Bitcoin and stablecoins may become a much safer choice compared to purely speculative coins like Dogecoin.
Dogecoin – A Not Worthy Risk Choice
Investing in cryptocurrency inherently carries many risks, and with meme coins, the level of risk is even higher. More crypto-friendly policies could open up many safer and more sustainable investment opportunities, making Dogecoin less attractive.
With the lack of real-world applications, strong volatility, and many potential risks, there are not many convincing reasons to buy DOGE at this time – even if the price is lower than at the beginning of the year. Notably, despite the recent decline, Dogecoin has still doubled in the past 12 months, meaning the current valuation is not at all "cheap".
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30% Off This Year, Is Dogecoin a Good Choice to Buy Right Now?
This year has been quite good for the crypto market in general, Bitcoin has continuously set new highs, while President Donald Trump is promoting crypto-friendly policies, including the establishment of a legal framework for stablecoins. However, Dogecoin (DOGE) – the famous meme coin that exploded right after Donald Trump's election victory last November – is having a bleak year. Since January, DOGE has lost more than 30% of its value, while Bitcoin has increased by about 18% and the S&P 500 has risen nearly 9%. Although it still holds the 8th position on the ranking with a market capitalization of 32 billion USD ( as of 2/9), it is clear that DOGE is gradually losing its appeal to investors. Low Interest Rates – The Key to Helping Dogecoin Recover? Dogecoin is inherently a highly speculative asset, heavily dependent on the risk appetite of individual investors. Currently, the demand for "risk acceptance" is not very strong. While Bitcoin – the safest and most popular coin – is still on the rise, riskier options like Dogecoin or Shiba Inu ( have decreased by more than 40%) and continue to weaken. One important factor that could help the meme coin group recover is the interest rate policy. If the U.S. Federal Reserve (Fed) lowers interest rates, the borrowing costs for businesses will decrease, inflation will be controlled, and investors' risk appetite will increase. According to the CME FedWatch tool, the probability of the Fed cutting interest rates this month is at 92%, with nearly a 50% chance of an additional cut in October. If multiple rate cuts occur, it could provide the necessary boost for Dogecoin and other meme coins to rebound this year. Risks from a Larger Economy Although low interest rates benefit DOGE, the overall economic picture remains a more important factor. Dogecoin hit a yearly low in April - coinciding with the time the US announced retaliatory trade tax measures. If the US economy shows signs of recession or slow growth, investors will be more cautious. In this context, Bitcoin and stablecoins may become a much safer choice compared to purely speculative coins like Dogecoin. Dogecoin – A Not Worthy Risk Choice Investing in cryptocurrency inherently carries many risks, and with meme coins, the level of risk is even higher. More crypto-friendly policies could open up many safer and more sustainable investment opportunities, making Dogecoin less attractive. With the lack of real-world applications, strong volatility, and many potential risks, there are not many convincing reasons to buy DOGE at this time – even if the price is lower than at the beginning of the year. Notably, despite the recent decline, Dogecoin has still doubled in the past 12 months, meaning the current valuation is not at all "cheap".