Dogecoin (DOGE 3.55%) is moving lower in Friday's trading in response to bearish momentum for the broader crypto market and a "buy the rumor, sell the news" dynamic. The cryptocurrency was down 6.7% over the past 24 hours of trading as of 2 p.m. ET. Over the same period, Bitcoin was down 2%, and Ethereum was down 3.3%.
Cryptocurrencies are moving lower in today's trading after the Federal Reserve's move to cut interest rates failed to spark a rally. Dogecoin is also likely seeing outsize sell-offs after the launch of an exchange-traded fund (ETF) built around the token also failed to spur bullish momentum.
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When it comes to rate cuts, crypto investors were hoping for more
At its meeting earlier this week, the Fed announced that it was cutting the benchmark interest rate by 25 basis points. In light of weak jobs growth and some other economic indicators, some crypto investors had been hoping that the U.S. central banking authority would cut rates by 50 basis points. After the recent rate cut failed to ignite a big rally for crypto valuations, some investors are opting to reduce their exposure to the space.
The Dogecoin ETF launch has yet to power big valuation gains
The REX-Osprey DOGE ETF has now launched, but it hasn't triggered the big valuation rally some investors were hoping for. News that the ETF had been approved by the Securities and Exchange Commission (SEC) helped spur big gains for the token in last week's trading, but the cryptocurrency has actually seen significant pullbacks preceding and following the launch of the fund this week. The valuation contraction appears to be a classic case of "buy the rumor, sell the news" trading.
