Cryptocurrency Market Sees Downturn as Dogecoin Loses Value

The cryptocurrency market is experiencing a downturn, with various assets showing significant losses. One notable example is Dogecoin, which dropped 7.6% in value over the past 24 hours. This decline follows yesterday's rally, where Dogecoin gained impressive gains but was unable to sustain its momentum.

A key factor contributing to this downturn is the increasing risk sentiment in the market. As more investors opt for defensive holdings, the demand for high-risk assets like meme coins has decreased. Additionally, metrics indicating greed and fear are at yearly lows, further exacerbating the bearish trend.

Dogecoin's uncapped supply has also raised concerns among investors. Despite its inability to generate recurring sources of demand, the token continues to issue new supply, diluting holders' value over time.