Thanks to meme-stock mania, a phenomenon that spilled over to the cryptocurrency market, Dogecoin (CRYPTO: DOGE) saw its price skyrocket over 11,000% from the start of 2021 to early May that year. But from that point until the end of 2022, the token lost a whopping 90% of its value. 

With the new year comes renewed enthusiasm. Dogecoin is already up 23% so far this year. Does this mean investors should buy the dog-themed meme token right now?

It's easy to chalk up Dogecoin's price rise this year to the fact that cryptocurrencies are extremely volatile, but there could be a better reason. Last year, the Federal Reserve quickly raised interest rates to curb surging inflation. And this caused investors to shun riskier assets. As a result, the crypto market's value went from roughly $2.2 trillion at the start of 2022 to $800 billion at the end of the year. 

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Source Fool.com