Dogecoin (DOGE 1.34%) couldn't be considered a good boy for investors late Friday afternoon. As of 4 p.m. ET, the leading meme coin was trading down by almost 3% amid negative sentiment affecting a wide range of cryptocurrencies.
In the doghouse
There were no developments specifically with Dogecoin that were sufficient to move its price that day. Rather, the pooch-themed crypto was at the mercy of broader geopolitical and macroeconomic developments, putting the kibosh on many digital coins and tokens.
Image source: Getty Images.
The most immediate of these on Friday was a relatively significant jump in the yields of benchmark bonds such as U.S. Treasury notes. While such movements are always driven by numerous factors, a very impactful one was yet another rise in global oil prices (due, naturally, to the ongoing conflict with Iran).
Investors sold out of reliable debt instruments like T-notes in anticipation of higher coupons from new bonds issued after Federal Reserve rate hikes. Such hikes are becoming more of a possibility as the threat of inflation increases, driven by causes such as the trajectory of "black gold." And when yields rise, the attractiveness of relatively risky investments wanes. Exhibit A: cryptocurrencies.
And within that asset category, meme coins are considered riskier still, as they are often seen as frivolous and lacking utility.
CRYPTO: DOGE
Key Data Points
Usefulness is key
Dogecoin's developers have been laboring hard to shed the unserious image that continues to dog (sorry) their financial instrument. I think the coin has more use than many realize, though that doesn't make me bullish about its future. At times like these, I think it's smart to go bargain-hunting for oversold coins and tokens, but it's best to focus on utility cryptos rather than Dogecoin and its ilk.
