Dogecoin Crashes 30% Amid Market Turmoil, Hits 4-Month Low

Dogecoin's price has plummeted over the past month, experiencing a 30% drop to its lowest point in four months. This decline continues, with a 20% fall in the past week and nearly 10% in the last 24 hours, bringing its current price to approximately $0.1735. The market capitalization has shrunk to $25.75 billion, while trading volume has spiked to $2 billion amidst heightened trader activity.

Source: CoinMarketCap

This sharp downturn follows a turbulent week in the cryptocurrency market, triggered by Donald Trump's announcement of a "crypto reserve" plan, which initially propelled prices upward. However, this rally proved short-lived. Bitcoin has fallen nearly 4% to $83,250, reversing its Trump-related gains, and Ethereum has followed a similar trend. Dogecoin, however, has suffered a more significant and rapid decline compared to other major cryptocurrencies.

Dogecoin's recent struggles contrast sharply with its post-election surge. Following Trump's January inauguration and the introduction of the Department of Government Efficiency (DOGE), its price rose dramatically from approximately $0.15 in November 2024 to over $0.47.

At its peak, Dogecoin's market cap exceeded $60 billion, fueled by Elon Musk's continued support and past endorsements.

This momentum, however, has significantly waned. Over the past three months, Dogecoin has lost more than 40% of its value, with increasing selling pressure as investors realize profits. In the last 24 hours alone, a substantial $21.94 million worth of Dogecoin was liquidated—$18.51 million from long positions and $3.43 million from short positions.

Despite the substantial price drop, Dogecoin remains among the top 10 cryptocurrencies. There's hope that new investment vehicles, such as ETFs, could reignite interest. Bitwise has filed for a Dogecoin ETF, and Grayscale has launched a Dogecoin Trust.

Experts estimate a 75% probability of approval for these Dogecoin investment products this year, potentially attracting new buyers and stabilizing the price.

Currently, however, Dogecoin faces considerable headwinds. The initial enthusiasm surrounding Trump's victory has subsided, Musk's influence appears diminished, and the sell-off shows no signs of abating. Without a significant shift in market sentiment, Dogecoin may experience further price declines.

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