Benzinga – Dogecoin (CRYPTO: DOGE) is trading lower by some 1.5% to the $0.064-level going into the close of U.S. trading Wednesday, according to data from Benzinga Pro. Several altcoins are lower as stocks across sectors rise following a lighter-than-expected June inflation report.
Cryptocurrencies, including Dogecoin, are often associated with being a hedge against inflation. When inflation is lighter than expected, it can undermine the perceived need for alternative stores of value, including cryptocurrencies. This can lead to reduced investor demand and a negative impact on the price of Dogecoin.
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Also, when inflation is lighter than anticipated, traditional investment options such as stocks, bonds, and fiat currencies may become more attractive to investors seeking stable returns. This shift in investor preference away from cryptocurrencies like Dogecoin can exert downward pressure on its price.
What Happened?
U.S. CPI inflation in June decelerated more than anticipated, reinforcing investor expectations of a single rate hike by the Federal Reserve followed by a halt to its tightening cycle. The Bureau of Labor Statistics’ data reveals a drop in the annual inflation rate from 4% in May to 3% in June, slightly below the average economist forecast of 3.1%.
This marks the twelfth consecutive month of declining inflation and the lowest reading since March 2021…Read More
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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