Looking at the price chart of Dogecoin (CCC:DOGE-USD), it’s clear that something’s awry today. The price of DOGE briefly plummeted from 32 cents to 9 cents in what appears to be a flash crash. Accordingly, investors may be wondering what sort of Dogecoin (DOGE) news led to this lightning-fast drop in this digital currency.
Indeed, investors continue to play close attention to Dogecoin. After all, this cryptocurrency still holds sixth place among all crypto options right now. Its market capitalization of more than $42 billion has taken many by surprise. This goes double for those who consider that this digital coin was created as a joke by its founders.
No one is laughing now. Dogecoin has seen its value climb to incredible heights this year, reaching more than 72 cents. Since reaching this high in May, Dogecoin has lost more than half its value as a bear market in crypto takes hold.
Let’s dive into what has driven this outsized volatility in Dogecoin today.
Today’s Dogecoin (DOGE) News Driving Volatility
On Friday, Thailand’s Security and Exchange Commission (SEC) announced a ban on meme tokens and non-fungible tokens (NFTs). Indeed, for fans of Dogecoin, this is yet another big regulatory blow. Circulation of these reports appears to be driving some serious volatility for meme tokens today.
Granted, Thailand did not call Dogecoin out by name. However, its association as a top meme pick among cryptocurrencies has many investors putting two and two together.
Indeed, these meme cryptos remain highly speculative, more so than traditional cryptocurrencies. Thus, investors ought to exercise proper portfolio discipline and practice proper risk management.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.