Dogecoin goes down as Fed keeps tight leash on rates

Dogecoin price fell by double digits to near $0.16 as the cryptocurrency market experienced a significant dip on Monday, November 3.

As the broader crypto market experienced a sudden dip on Monday, extending the weakness seen in October, Dogecoin (DOGE) plunged to lows of $0.16. The meme coin’s price dropped by double digits before bulls stemmed the rot and bounced to near $0.17. 

However, the DOGE token, which remains in the top 10 cryptocurrencies by market cap as almost every other coin slips, is still down 9% over the past 24 hours as of writing.

The top memecoin by market cap is 10th on the market cap log with $25.5 billion. It has nonetheless posted extended losses over the past week of 18%, and a 268% spike in daily volume to over $3.3 billion suggests heavy selling.

Why did Dogecoin price fall today?

The breakdown to intraday lows came as sentiment across crypto waned further on Monday amid comments from a top Federal Reserve official on interest rates.

Austan Goolsbee, the president of the Federal Reserve Bank of Chicago, said in remarks on Nov. 3, that he wouldn’t be in a hurry to cut interest rates further while inflation remains well off the Fed’s 2% target.

He noted he’s not “decided going into the December meeting” with his threshold for another cut somewhat higher than was the case when the central bank cut rates in September and October.

“I am nervous about the inflation side of the ledger, where you’ve seen inflation above the target for four and a half years, and it’s trending the wrong way,” Goolsbee told Yahoo Finance in an interview.

Investors have shown jitters since last week’s rate cut as Fed chair Jerome Powell signaled a cut in December was “not a foregone conclusion.”

Goolsbee’s comments added to the downbeat sentiment, with Dogecoin price falling as Bitcoin slipped to lows of $105,336 and Ethereum pared gains to touch $3,564.

Crypto analysts at crypto.news have recently pointed to a potential dip in DOGE’s value, noting $0.14 as an immediate target for bears.

Read more: Crypto market crashes as top Fed official warns on interest rates