Why did the Dogecoin price tumble 12% in August?

It may have been created as a joke, but Dogecoin has a total market valuation north of US$8 billion.

Bernd Struben

Author bio Bernd Struben earned his BA in economics from the University of Michigan in 1991, with post-graduate studies in environmental economics at the University of Connecticut. Over the years he’s written about and analysed the tourism industry in the Caribbean; Europe’s commercial real estate markets; and, since moving to Australia in 2010, global and Aussie share markets. Bernd studies geopolitical and macroeconomic trends, alongside sector and company specific data, to gauge what he believes could be tomorrow's best investments. In his free time, you might find Bernd at the beach with his family or working on his next science fiction novel. Areas of expertise Australian and global share markets Macroeconomic and geopolitical trends Real estate Education Economics, University of Michigan Favorite investment quote "The four most dangerous words in investing are: 'This time it's different." — Sir John Templeton

Published September 3, 2022 9:30 am AEST

The Dogecoin (CRYPTO: DOGE) price is up 2.5% over the past 24 hours, currently trading for 6.25 US cents.

At that price, the crypto, which was created as a joke and features a Shiba Inu as its mascot, has a market cap of US$8.3 billion. This makes it the tenth biggest crypto in virtual circulation, according to CoinMarketCap. And that's after falling 64% year to date.

There's today's price action for you.

Now, how did the Dogecoin price hold up in August, a month that saw the tech-heavy NASDAQ fall 4.6%?

A man wearing glasses and a purple vest holds his hand to his chin and wonders — Image source: Getty Images

Dogecoin price battered by rising interest rate outlook

Depending somewhat on your time zone, the Dogecoin price stood at 7.09 US cents as we ticked our calendars over to August.

By the time the clock struck midnight on 31 August, the dog-themed crypto was trading for 6.29 US cents, down 12.3% for the month. While nothing to cheer about, that performance did edge out the 14.8% losses posted by Bitcoin (CRYPTO: BTC) last month.

Investors holding the crypto throughout the month would have had to stomach plenty of volatility. Though that's nothing new in the crypto sphere.

August saw the Dogecoin price trade as low as 6.02 US cents and as high as 8.86 US cents. A far cry from the all-time high of 73.76 US cents it hit on 8 May 2021.

As with Bitcoin and most other cryptos, the Dogecoin price struggled last month as investors were met with the reality that inflation across most of the globe isn't likely to return to within central banks' target ranges in quick order.

With the United States Federal Reserve and other central banks, including the Reserve Bank of Australia, flagging additional sizeable rate hikes in the months ahead to curb soaring prices, risk assets were broadly sold off across the board.

Dogecoin was no exception.

Automatic Renewal

By taking up this offer, you will also be enrolled in our auto-renewal program, which is our way of making your ongoing subscription easier by ensuring uninterrupted service. Don't worry, though – you're not locked in, and can cancel your auto-renewal at any time before each 'anniversary' date without question or penalty.