Dogecoin (DOGE) has faced a 6% drop today, hitting an intraday low of $0.3404 on Dec. 19, as Bitcoin's (BTC) slip below the $100,000 mark triggered a wave of sell-offs across the memecoin sector. This decline outpaced the broader crypto market, which fell by approximately 3.5% during the same period.Key Factors Behind DOGE’s PullbackMarket-Wide Sell-Off Post Rate CutThe Federal Reserve's 25 basis-point rate cut on Dec. 18 was followed by a hawkish press conference from Chair Jerome Powell, dampening investor sentiment. Powell's remarks about limited rate cuts in 2025 and an increased 2025 inflation outlook from 2.1% to 2.5% further weighed on the market. This led to Bitcoin’s 2% drop, rippling through the memecoin market, with Dogecoin (DOGE) and other top memecoins like Shiba Inu (SHIB) and Pepe (PEPE) experiencing declines.Increased Trading Volume Amid LossesThe memecoin market witnessed over $10 billion in value wiped out within 24 hours, while trading volume surged nearly 50%. This highlights the heightened risk-off sentiment among investors, particularly in speculative assets like memecoins.Bearish Market SentimentSantiment data shows a downturn in Dogecoin’s social sentiment since Dec. 3, reflecting growing impatience among traders amid prolonged price consolidation. Negative sentiment could, however, signal a potential reversal if DOGE manages to hold its current support levels.Technical Weakness and ResistanceDOGE’s recent decline followed a bearish divergence between its price and the relative strength index (RSI), a common signal of weakening uptrend momentum. Key resistance zones, including $0.40–$0.42 and $0.47, have further hindered DOGE’s upward movement.Outlook for DOGEProfessional trader Natalie Dormer notes that the pullback has brought DOGE to a critical support level around $0.35, aligning with its 50-day exponential moving average. Dormer remains cautiously optimistic, stating, “Pullbacks and volatility do happen in any uptrend, but our structure still favors upside for $DOGEUSD.”While the current bearish sentiment poses challenges, holding key support levels could pave the way for a rebound, provided broader market conditions stabilize, according to Cointelegraph.

According to BlockBeats, recent data from Farside indicates substantial outflows from several U.S. Bitcoin spot ETFs as of December 20. The ARKB ETF experienced a net outflow of $108.4 million, while the BITB ETF saw a net outflow of $43.6 million. Additionally, Grayscale's BTC fund reported a net outflow of $188.6 million, and the Grayscale GBTC fund had a net outflow of $87.9 million.

These significant outflows highlight a notable shift in investor sentiment towards Bitcoin-related financial products. The reasons behind these movements are not detailed in the report, but such large-scale withdrawals could be indicative of broader market trends or investor strategies. The data suggests a potential reevaluation of Bitcoin investments by institutional and retail investors alike, possibly influenced by market volatility or regulatory developments.

The outflows from these ETFs and funds may impact the overall market dynamics, as they reflect investor confidence and market perceptions of Bitcoin's future performance. The financial community will likely monitor these developments closely to assess their implications on the cryptocurrency market and related investment vehicles.