How do global economic downturns or recessions specifically impact the Dogecoin price?

How do global economic downturns or recessions specifically impact the Dogecoin price?

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Global economic downturns or recessions tend to have a significant and often negative impact on the dogecoin price, as they do on most risk assets. During periods of economic contraction, investors typically become more risk-averse, pulling capital from speculative investments like cryptocurrencies and moving it towards safer assets such as government bonds or even cash. This shift in sentiment leads to decreased demand and increased selling pressure, which can cause Dogecoin's price to decline. Furthermore, reduced consumer spending and disposable income during a recession can lessen interest in novelty assets, impacting Dogecoin's retail-driven momentum. While some might argue for copyright as a hedge against traditional financial systems, the reality is that major economic crises often lead to a flight to safety across all asset classes, making Dogecoin vulnerable to broader market panics and liquidity crunches.