A popular cryptocurrency analyst warned Dogecoin (CRYPTO:DOGE) traders on Thursday not to focus too much on the cryptocurrency, as its movements are tied to what Bitcoin does.
What happened
Kevin, known for sharing information and predicting price movements for the cryptocurrency, stated: "My position is that DOGE is not self-governing and its fate lies purely in the hands of BTC at this moment, so overly focusing on the asset is a waste of time."
The analyst added that he was confident the ongoing cycle would tilt towards an uptick in the coming days, regardless of the "short-term noise." "There is nothing more to do than sit and wait if you are a long-term investor who entered early, like me."
It is interesting to note that Dogecoin had a price correlation of 0.77 with Bitcoin, lower than that of Ethereum (CRYPTO:ETH) and Cardano (CRYPTO:ADA), but higher than that of Shiba Inu (CRYPTO:SHIB), according to IntoTheBlock.
To understand this, a correlation close to 1 implies a strong positive correlation between the two prices, while a correlation close to 0 indicates no correlation at all.
Why it matters
Kevin's statements came at a time when the cryptocurrency market was experiencing significant volatility. DOGE fell back on Thursday, which in turn followed Bitcoin's drop below $100,000.
Large-scale transaction volumes increased by 41% in the last 24 hours, indicating a surge in whale activity, according to data from IntoTheBlock. Long-term investors shed DOGE holdings, evidenced by a 0.88% drop in the balance held by addresses that have held the cryptocurrency for at least a year.
The open interest of DOGE, the total amount of money locked in derivative contracts, also fell by 0.83%. The number of traders making bearish bets surpassed those speculating on price increases, according to the Long/Shorts Ratio.
Dogecoin price movement
At the time of writing this article, Dogecoin was trading at $0.4059, down 2.75% in the last 24 hours, according to data from Benzinga Pro.