Dogecoin and Meme Coins Plunge Amid Fed Fears

Dogecoin and Meme Coins Tumble as Fed Fuels Market Concerns

Dogecoin (DOGE) has plummeted 12.4% in the last 24 hours, echoing a broader market decline triggered by the Federal Reserve's latest economic projections.

The meme coin has dwindled to $0.31, with trading volume surging 67% to $10.25 billion as investors adjust their holdings. It has now declined 35% from its 2024 peak of $0.47.

Despite the setback, Dogecoin's market capitalization remains at $46.6 billion, solidifying its position as the seventh-largest cryptocurrency.

The Fed's hawkish remarks on unexpectedly high inflation and unemployment forecasts for 2025 sent shockwaves through risk assets on Wednesday, with cryptocurrencies bearing the brunt of the immediate market reaction.

The Fed's projections, hinting at sustained interest rate hikes, spooked market participants and affected speculative assets like meme coins, which are typically sensitive to macroeconomic signals.

Dogecoin's price drop coincided with significant outflows, particularly on Binance, where over $83 million exited the market while trading volume spiked 74% to $1.85 billion, according to data aggregated from major exchanges by CoinGlass.

The liquidation data reveals concentrated selling pressure, with negative net flows across most major exchanges except Bybit and Bitstamp, suggesting a broader market exodus rather than exchange-specific activity.

Exchange-wide trading patterns indicate persistent selling from late November through December, with the DOGE/USDT pair on Binance and OKX experiencing sharp declines, falling roughly 23% over the past week.

The wider crypto dip has seen other assets, including Ethereum, XRP, and Solana, suffer double-digit losses. DOGE's downturn aligns with Bitcoin's recent retreat below $100,000, although meme coins have generally experienced steeper declines compared to other cryptos, according to sector data from CoinGecko.

Only Fartcoin has shown positive returns for the past week, gaining 71%. True to its name, the meme coin continues to accumulate and is up 323% for the month.

Fartcoin has also garnered significant mainstream media attention, including a mention in a Decrypt article featured on CBS' The Late Show with Stephen Colbert.

Data from CoinGecko indicates that recently popular Solana meme coins, such as MOODENG and CHILLGUY, have fallen to mid-cap status, with their prices dropping 38% and 43%, respectively. Peanut the Squirrel (PNUT) has also declined 46%, though its market cap still exceeds $672 million.

Other dog-themed tokens have mirrored DOGE's decline. Shiba Inu (SHIB) has dropped 23.3% for the day, while BONK has fallen 22.5%.

Despite the sharp correction, DOGE's current price represents a remarkable journey from its humble beginnings, although it remains 57% below its peak of $0.73 reached during the 2021 bull market.