It’s Happening, Again
Dog coins are mooning again, which has historically been a pretty good indication of an overheated market. The first time dog coins went wild was Apr. – May. this year, and quickly cratered as crypto markets cooled off. In early Sept., dog coins were all the rage again and the broader crypto market saw a fairly deep de-leveraging.
The general thesis here is that dog coins are high-risk assets. So when they perform well, it’s a sign that traders are pumping money into highly speculative assets, implying a higher risk tolerance. With these assets once again outperforming the rest of crypto, and the Fear & Greed index still sitting at “greed,” we could see the market consolidate a bit further from here (though our bias remains to the upside at the moment).