Why Dogecoin Is Nosediving

Dogecoin DOGE/USD is trading lower by 5.23% to $0.0799 Friday morning amid weakness in the broader crypto sector. Peer cryptos Bitcoin BTC/USD, Ethereum ETH/USD have also been extremely volatile during Friday's session amid overall U.S. market weakness after the Bureau of Economic Analysis reported a 5.4% increase in the personal consumption expenditures (PCE) price index in the month of January, the latest signal the Federal Reserve is struggling to bring down inflation.

Cryptocurrencies have been seen by some investors as a speculative hedge against inflation and the Fed's plans to curb inflation could weigh on the broader cryptocurrency sector. 

So What Happened?

Our Benzinga team reported the headline PCE rose 5.4% in January. That's up from a 5.3% gain in December but still well below its 2022 high of a 7% increase in June. The January PCE reading came in well above economist estimates of 4.9%.

Core PCE inflation, which excludes volatile food and energy prices, was up 4.7% in January, above economist estimates of 4.3%...Read More

According to data from Benzinga Pro, Dogecoin has a 52-week range of $0.179-$0.049.