Dogecoin (DOGE) is down 20% in the past 24 hours after a 100% rally on Friday. The “meme” cryptocurrency still has a market capitalization in excess of $1 billion and has registered $2 billion in trading volume in the past day.
Dogecoin began to rally a few weeks ago after Elon Musk, CEO of Tesla and SpaceX, reminded the market of the asset. In spite of the latest correction, DOGE is still up 100% in the past two weeks.
DOGE’s ongoing correction comes in spite of overall strength in the altcoin market. Ethereum, for instance, has gained 35% against the U.S. dollar in the past 24 hours as capital cycles from BTC to altcoins. Bitcoin Cash and Litecoin, too, are moving higher.
Here are a few reasons why DOGE may be dropping in spite of the widespread outperformance of altcoins.
Related Reading: Wall Street Veteran Kickstarts Own Bitcoin Fund With $25m Investment
#1: Dogecoin Has Been A High Beta Bitcoin Play
Over the past few weeks, Dogecoin has acted as a high beta Bitcoin play. That’s to say, it has traded similarly to BTC but with more overall volatility.
When BTC surged around 10% on Friday, DOGE had experienced a 100% gain. While the correlation is not perfect, it has continued into today.
Bitcoin is down 7.5% in the past 24 hours while DOGE has shed 22.5% of yesterday’s value.
…
