Dogecoin (CRYPTO: DOGE) is trading lower by 5.6% to the $0.11 level during Friday's session. Shares of the popular altcoin are trading lower amid overall global market weakness driven by weaker-than-expected U.S. jobs data.

The cooler-than-expected jobs report, which revealed a slowdown in job creation and a rise in the unemployment rate, suggested underlying weaknesses in the U.S. economy. This led to increased speculation that the Federal Reserve might need to implement a larger rate cut than previously anticipated, as reflected in the spike in the probability of a 50-basis-point rate cut for September.

Read Also: FBI Issues Alert On Crypto Exchange Impersonation Scams

In an environment of economic uncertainty and potential policy shifts, risk assets, including cryptocurrencies like Dogecoin, often face heightened volatility. Investors tend to move away from speculative investments and seek safer havens when there's increased uncertainty about economic stability and future interest rates.

This flight from riskier assets can cause sharp declines in assets like Dogecoin, as its value is heavily influenced by market sentiment and speculative trading.

Read Also: Kamala Harris Must Address Crypto To Compete With Trump's Pro-Bitcoin Agenda, Think Tank Warns