- Dogecoin experiences 12.4% decline following Federal Reserve’s latest economic projections.
- Trading volume surges 67% to $10.25 billion amid increased selling pressure.
- DOGE maintains $46.6 billion market cap, holding seventh position in cryptocurrency rankings.
- Binance records $83 million in outflows with 74% spike in trading activity.
- Broader cryptocurrency market faces downturn with Bitcoin retreating below $100,000.
Dogecoin (DOGE) plummeted to $0.31, marking a 35% decrease from its 2024 peak of $0.47, as cryptocurrency markets react to Federal Reserve Chairman Jerome Powell’s statements on inflation and unemployment forecasts. The decline comes amid heightened trading activity and substantial market outflows.
Federal Reserve Impact on Crypto Markets
The Federal Reserve’s economic outlook triggered widespread selling across digital assets, with meme coins showing particular vulnerability. Powell’s assessment of inflation rates and unemployment projections for 2025 prompted investors to reduce exposure to high-risk assets.
Market data from CoinGlass indicates significant selling pressure on major exchanges:
- Binance: $83 million in outflows
- Trading volume increase: 74% to $1.85 billion
- DOGE/USDT pair decline: 23% weekly decrease
meme coin Market Dynamics
According to CoinGecko data, the meme coin sector experienced steeper declines compared to mainstream cryptocurrencies. Shiba Inu (SHIB) dropped 23.3%, while BONK decreased by 22.5%.
Solana-based meme tokens witnessed substantial corrections:
- MOODENG: 38% decline
- CHILLGUY: 43% decrease
- Peanut the Squirrel (PNUT): 46% reduction, maintaining $672 million market cap
Despite current market conditions, Dogecoin maintains its position as the seventh-largest cryptocurrency with a $46.6 billion market capitalization, though trading 57% below its 2021 high of $0.73.
"Higher interest rates for longer periods typically impact speculative assets first," said a market analyst familiar with the situation, citing the increased sensitivity of meme coins to macroeconomic signals.
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