Dogecoin (DOGE +2.62%) is moving higher on Friday. The coin is up 4% since 4 p.m. ET Thursday as of 1:08 p.m. ET. The move comes as the S&P 500 is flat and the Nasdaq Composite has gained 0.3%.
As Bitcoin goes, so goes most of the crypto market -- Dogecoin included. While this doesn't always hold, it's a good bet that when Bitcoin moves up, the meme coin will as well.
CRYPTO: DOGE
Key Data Points
The Fed cuts rates, but future cuts are uncertain
Bitcoin is up today after a rough week. Crypto investors are wary of broader macro trends and mixed signals from the Federal Reserve. Another 0.25% cut was announced on Wednesday, but additional rate cuts in December look less likely following Fed Chair Jerome Powell's statement that they were "not a foregone conclusion. Far from it."
Image source: Getty Images.
Dogecoin carries substantial risk
Though Dogecoin tends to rise when Bitcoin rallies, at least in the short term, don't mistake that for a genuine correlation over time. Dogecoin remains highly speculative, with its value driven entirely by social momentum rather than fundamentals. It was designed as a joke, not a legitimate investment. That hasn't changed. As with all meme coins, its price can collapse at any moment.
In the long run, Bitcoin is a much better choice.
