The cryptocurrency Dogecoin (DOGE -8.07%) is moving lower today, down 7.9% in the last 24 hours as of 1:13 p.m. ET Thursday. The drop comes as the S&P 500 and Nasdaq Composite both fell slightly.
Dogecoin is falling today along with the rest of the crypto market after comments from U.S. Treasury Secretary Scott Bessent sent Bitcoin lower.
The U.S. won't buy Bitcoin
Bessent appeared on Mornings with Maria on Fox Business, saying that the federal government has no plans to purchase more Bitcoin to add to its strategic reserve, instead relying on what has already been confiscated through law enforcement actions.
Bessent said: "We've also started to get into the 21st century, a Bitcoin Strategic Reserve. We're not going to be buying that, but we're going to use confiscated assets and continue to build that up. We're going to stop selling that."
Image source: Getty Images.
While the fact that the government won't be off-loading its substantial Bitcoin assets onto the market is good news for the crypto's price, investors had been speculating that the Trump administration would pursue a reserve strategy that included the purchase of more tokens. The confirmation that this wouldn't happen sent the crypto lower, along with altcoins across the market, Dogecoin included.
Dogecoin is risky
While Dogecoin has outlasted most meme coins, it remains an inflationary asset with no fundamental utility. I would steer investors interested in crypto investing toward more proven projects like Bitcoin and Ethereum.
