The cryptocurrency market is facing a tough week, with Dogecoin taking the brunt of the losses. Dropping 11% in just 24 hours, the meme-coin's sharp decline is part of a broader sell-off that has seen Bitcoin, Ethereum, and other major coins struggle.

The sell-off could be attributed to profit-taking after a recent bullish phase and market reaction to a hawkish Federal Reserve stance. The drop in Dogecoin's price is significant, extending its weekly losses to over 20%.

Market Sentiment Takes a Hit

The coin's sharp fall contrasts with its earlier rally, where it surged more than 200% between November 4 and December 9. Could Dogecoin maintain its momentum, or is the current slump a sign of things to come?

Dogecoin is only one of the struggling cryptocurrencies. The top cryptocurrency, Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term, once hitting a historic high above $108,000, dropped to $92k on Friday. Other major assets, including Ethereum and Solana, also experienced substantial declines. Ethereum declined 1% and 12% in the past day and week, respectively.

The catalyst for this downturn can be traced to last week's Federal Open Market Committee (FOMC) meeting, where the U.S. central bank's dovish stance was replaced by a more cautious outlook. Federal Reserve Chair Jerome Powell hinted that rate cuts in 2025 may not be as aggressive as previously expected, causing risk assets like cryptocurrencies to falter.

Dogecoin Faces Security Scare

Adding to the turmoil, Dogecoin recently faced a critical security vulnerability that has raised concerns over its stability. A hacker exploited the flaw to crash 69% of the network's nodes, drawing attention to the vulnerabilities within the Dogecoin system.

Though the breach has since been addressed, the incident highlights the challenges faced by the network as it grows. However, the recent security scare could undermine confidence in Dogecoin's long-term prospects.