Dogecoin Drops 5% Amid ETF Shutdown and Rising Bond Yields
Bitcoin's lesser-known cousin, Dogecoin (DOGE), took a hit on Thursday, losing nearly 5% of its value. The decline was largely due to two factors: the shutdown of the Bitwise Dogecoin ETF and rising bond yields.
The Bitwise Dogecoin ETF sponsor announced that it would close and liquidate the fund on October 22, following its final trading day on October 13. This decision suggests that demand for Dogecoin among the general public is limited compared to more popular cryptocurrencies like Bitcoin.
Furthermore, bond yields rose due to a combination of factors, including persistent inflation as indicated by the producer price index update from the Bureau of Labor Statistics on Thursday morning. When bond yields increase, investors tend to shift their focus towards safer investments, leading to softer demand for riskier assets like cryptocurrencies.