Why Dogecoin, Polkadot, and Chainlink Are Losing Steam Today
In yet another high-correlation day between cryptocurrencies and their equity counterparts, losses are being seen across the board. As of noon ET, the overall crypto market is down roughly 2%, outpacing aggregate losses seen in most equity indices today. However, certain large-cap tokens are worth pointing out as today's underperformers. Dogecoin (CRYPTO: DOGE), Polkadot (CRYPTO: DOT), and Chainlink (CRYPTO: LINK) saw 24-hour declines of 3.2%, 4.2%, and 3.8%, respectively, outpacing the declines seen in the broader market.
A portion of this move can be attributed to the violent upward swing these three tokens (and the broader crypto market, for that matter) have seen in recent weeks. Dogecoin is still up more than 20%, surging on yet another favorable tweet from Elon Musk. Polkadot's 45% year-to-date move has been driven by numerous factors, including an intriguing analysis by parent company Web3 Foundation, which asserts DOT is not a security. And Chainlink has seen strong support from crypto analysts, tied to broader blockchain development metrics and leading to a 26% year-to-date increase.
Accordingly, today's move lower appears to be the result of a broader decline in sentiment, which is being felt more by higher-risk assets today. Ahead of the highly awaited upcoming FOMC meeting, investors are bracing for what could be a more hawkish stance from the Federal Reserve relative to other central banks.
Source Fool.com
