Bitcoin and Dogecoin Experience Downward Price Movement as Correlation with Traditional Assets Emerges

Patterns have started to emerge amid ongoing price volatility on the cryptocurrency market. There are signs of strong correlations between digital

Bitcoin (BTC) and Dogecoin (DOGE) prices are both experiencing a downward movement, emerging amid ongoing price volatility on the cryptocurrency market.

There are signs of strong correlations between digital assets and traditional financial assets. In a post on X, Mike McGlone, Senior Commodity Strategist for Bloomberg Intelligence, highlighted the correlations of some of these assets.

“Bitcoin vs Gold YTD: 0.15; Bitcoin vs U.S. Dollar Index: -0.14. This emphasizes the weak relationship between Bitcoin and gold, while the negative correlation with the U.S. dollar index implies that BTC moves in the opposite direction of the dollar value (i.e., when BTC strengthens, the dollar weakens, and vice versa). Overall, the stronger correlation is currently playing out on the broader cryptocurrency market, where BTC and DOGE are on a downward trajectory. On rare occasions, however, DOGE has broken the correlation with Bitcoin, as reported by U.Today.”

McGlone's analysis appears to be playing out as Bitcoin and Dogecoin are experiencing a downward price movement as of this writing. Interestingly, the price decline commenced hours apart, with Bitcoin descending first, only for DOGE to follow the same trajectory.

CoinMarketCap data shows BTC is exchanging hands at $92,873.61, a 3.04% decrease in the last 24 hours. DOGE has registered a slightly higher decline of 8.16% at $0.3214. Regardless of the percentage difference, both are experiencing a rapid decline compared to how they started in January.