Dogecoin (DOGE 2.32%) is moving higher this week, up 13.4% as of 6:03 p.m. ET on Thursday, as measured from last Friday at 4 p.m. The move comes as the S&P 500 and the Nasdaq-100 gained 1.1% and 1.6%, respectively.
As Bitcoin goes, so too does most of the crypto market -- Dogecoin included. While this doesn't always hold, it's usually a fair bet that if it's a big week for the original crypto, it'll be a positive week for the meme coin as well.
That's what is happening here. Bitcoin is up nearly 10% this week as investors react to the U.S. government shutdown. The coin is often touted as "digital gold," making it attractive in times of uncertainty.
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Dogecoin is a risky asset
Despite the fact that Dogecoin often gets a bump when Bitcoin trades higher, over time, its value is anything but tied together. Dogecoin is highly speculative, and its value is essentially driven by hype. It wasn't created to be a serious investment, and it shouldn't be considered one now. With a meme coin like Dogecoin, the bottom can fall out at any moment, and its price could plummet.
In the long run, Bitcoin is a much better choice.
