Dogecoin's Latest Rally: What Economic Data Is Driving the Meme Coin Higher

Dogecoin (DOGE) climbed notably during Tuesday’s trading session, marking a significant rebound following Monday’s selloff. The cryptocurrency gained 6.1% in the 24 hours leading up to 9 p.m. ET, trimming its weekly losses to approximately 6.8%.

The driving force behind this recovery wasn’t sentiment or hype—it was concrete economic data from the Federal Reserve Bank of Cleveland. A new report revealed that over 39,000 U.S. workers across 21 states received Worker Adjustment Retraining Notification Act (WARN) notices in October, signaling anticipated job losses ahead.

How Weak Employment Data Shifts Rate-Cut Expectations

This employment data carries significant implications for monetary policy. Rising layoff notices traditionally signal a softening labor market, which often prompts central banks to pursue more accommodative policies. In this case, market participants are interpreting the increased jobless claims as a potential catalyst for the Federal Reserve to reduce interest rates.

The Federal Open Market Committee (FOMC) is scheduled to convene on December 9-10, and this meeting will be crucial for rate-cut decisions. Following the Cleveland Fed’s WARN report, CME Group’s probability tracker showed the odds of an interest rate cut surging to 53.4%—a notable jump from the previous 46.6% reading.

Why Crypto Markets Are Paying Attention

Lower interest rates generally benefit risk assets, including cryptocurrencies. When borrowing costs decline, investors often shift capital toward higher-yielding or speculative assets like Dogecoin. The meme coin’s 6.1% single-day gain reflects this dynamic playing out in real-time.

However, it’s worth noting that DOGE remains sensitive to broader macroeconomic conditions beyond just rate expectations. Valuation pressures, regulatory developments, and overall crypto market sentiment will continue shaping price movement. The December FOMC decision could serve as a significant inflection point for Dogecoin and the wider digital asset space, but multiple factors will ultimately determine the meme coin’s trajectory heading into year-end.