The Downward Spiral Continues: Why Dogecoin Dropped Another 5% Today

Core Viewpoint - The cryptocurrency market is experiencing a lack of excitement as the year ends, with Dogecoin notably declining by 5% in the last 24 hours and projected to finish the year approximately 63% lower than its starting point in 2025 [1]. Group 1: Market Dynamics - The end-of-year selling pressure is largely attributed to investors adjusting their portfolios in anticipation of the New Year, particularly reducing exposure to high-risk assets like meme coins [4]. - The overall investment narrative surrounding Dogecoin has weakened, influenced by its infinite supply and the concentration of ownership, where about 90% of Dogecoin is held by a small number of wallets [5]. Group 2: Investor Sentiment - The concentration of Dogecoin ownership means that significant sell-offs by a few large investors could lead to a more severe decline in price [5]. - Retail investors may reconsider their positions in Dogecoin due to its recent downward trend and the overall market sentiment leaning towards a more defensive posture [6][7].