Dogecoin (DOGE -5.78%) is down in Thursday trading. The cryptocurrency’s token price was down 3.9% over the previous 24 hours, as of 10:15 a.m. ET. In the meantime, Bitcoin was down 3.3%, and Ethereum was down 5.2%.
Dogecoin is losing ground today in conjunction with rising macroeconomic risk indicators. The popular coinThe token price of is also under downward pressure in conjunction with recent comments from Tesla CEO Elon Musk.
Dogecoin sinks due to macroeconomic risks
Dogecoin and other cryptocurrencies faced bearish pressure this week amid a rising tide of bearish macroeconomic indicators. On Tuesday, the Bureau of Labor Statistics (BLS) released new job opening data that increased concerns about inflation trends.
The next day, reports emerged that President-elect Trump was considering declaring a national economic emergency shortly after taking office later this month, in order to quickly implement sweeping new tariffs. Yields on U.S. Treasury bonds have also risen, which tends to create pressure on the valuation of cryptocurrencies and other speculative investments.
While no single indicator appears extremely bearish, the combination of potential factors has come together to cause a significant pullback for Dogecoin and the broader crypto market.
Has Musk become bearish on Dogecoin?
Elon Musk’s recent comments about X have somewhat dampened expectations that the tech leader would help drive big gains for Dogecoin. Musk was named alongside Vivek Ramaswamy to lead the Department of Government Effectiveness (DOGE) advisory committee under the new Trump administration.
While some investors hoped that the media prominence of the new advisory board would help gain power for Dogecoin because they have a common abbreviation, recent posts from the Tesla CEO have called that thesis into question. Musk posted on
Musk’s recent comments and efforts to curb inflation do not necessarily mean that he has become bearish on Dogecoin, or that the cryptocurrency will not suffer further impact due to his support or the media coverage of the Ministry of Government Effectiveness. But recent movements in the meme coin’s token price highlight the cryptocurrency’s predisposition to valuation volatility as macroeconomic, political and media dynamics change.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool holds positions and recommends Bitcoin, Ethereum and Tesla. The Mad Motley has a disclosure policy.