What happened
It’s been another week of sell-offs for the broader cryptocurrency market. Bitcoin ( BTC 2.41% ), Dogecoin ( DOGE 2.31% ), and Chainlink‘s ( LINK 5.39% ) tokens fell roughly 10%, 17%, and 18%, respectively, over the previous seven days of trading as of 5:45 p.m. ET on Friday, according to data from S&P Global Market Intelligence.
![Dogecoin [DOGE] to rise beyond 40%? Whale activity may spur rally](https://crypto.newswireservice.net/wp-content/uploads/2023/02/doge-wale-1000x600-120x86.jpg)
In addition to concerns about cyclical pricing trends and regulatory risks, cryptocurrency prices appear to be getting dragged lower amid the ongoing China Evergrande Group debt default saga. Investors have generally been showing signs of becoming more cautious amid a mounting combination of risk factors, and it’s possible that the crypto space will see more significant sell-offs in the near future.
Image source: Getty Images.
So what
Fitch Ratings announced on Dec. 9 that China Evergrande Group had defaulted on $1.2 billion in bonds, and that it had responded by cutting the Chinese real estate giant’s rating to “restricted default.” China Evergrande’s default status might seem like an odd catalyst to drive prices for Bitcoin and other cryptocurrencies lower, but it makes sense in the context of investors seemingly becoming more risk averse lately.
China stands as the world’s second-largest economy, and investors are worried that financial issues in the country could have ripple effects on other markets. Cryptocurrencies don’t always post movements in line with trends for equities and assets, but broad movements out of risky investments can trigger big sell-offs for crypto tokens. With the market-leading cryptocurrency now down roughly 29% over the last month, this dynamic appears to be at least partially responsible for Bitcoin’s recent slide.
As a meme cryptocurrency, Dogecoin often trades in tandem with moves for the broader cryptocurrency market, so it’s not surprising to see its token also losing ground. The coin has previously posted explosive gains thanks to indications from Tesla CEO Elon Musk and…
![Dogecoin [DOGE] to rise beyond 40%? Whale activity may spur rally](https://crypto.newswireservice.net/wp-content/uploads/2023/02/doge-wale-1000x600-350x250.jpg)
