Dogecoin (DOGE -4.91%) is moving lower in Tuesday's trading. The cryptocurrency's token price has fallen 3.7% over the past 24 hours of trading as of 12:55 p.m. ET. Over the same period, Bitcoin is down 2.3%, and Ethereum was down 3.9%.
The cryptocurrency market is getting hit with bearish pressures in today's trading, and Dogecoin is getting hit with sell-offs in conjunction with the trend. While it may seem strange at first glance, it appears recent news from Home Depot is playing a significant role in the latest pullback for the meme coin.
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Is Home Depot's latest quarterly report an important sign for Dogecoin?
Home Depot published its second-quarter results before the market opened this morning, and the earnings release appears to be triggering some significant moves in the crypto space. While the company's sales were in line with Wall Street's forecast, and earnings fell just shy of the target, the retailer's management issued commentary that has significant implications for the crypto market and broader U.S. economy.
Home Depot says that it will be hiking prices on some items in response to higher costs that it's facing due to tariffs. The comments from the home-improvement retailer suggests that overall inflation in the U.S. economy could start to accelerate again -- a development that could prove very damaging to cryptocurrency valuations.
What's next for Dogecoin?
Last week, the Bureau of Labor Statistics published its Producer Price Index (PPI) report for July. Sequential monthly PPI inflation came in at its highest level in more than three years, which raised concerns that inflation faced by producers and wholesalers would soon start to appear at the consumer level of the economy. Home Depot's recent comments about price increases seem to be adding to those fears. Dogecoin and other cryptocurrencies have seen bullish momentum thanks to expectations that the Federal Reserve is poised to deliver significant cuts to interest rates, but that thesis could be dashed if inflation comes in at higher-than-anticipated levels.
