Trump Trade War Triggers Massive Meme Coin Selloff, Dogecoin Recovers After Initial Plunge

Trump's Trade War Announcement Triggers Major Selloff in Meme Coins, Dogecoin Falls 12%

  • Meme coins experienced significant losses following Trump’s trade war announcement, with many falling over 20% in value.
  • Dogecoin dropped to $0.21 before recovering to $0.29, still down 12% for the week.
  • Weekend crypto trading amplified market volatility due to 24/7 trading dynamics.
  • Trading volume on Solana’s Pump.fun platform decreased 39% to $193 million amid market uncertainty.
  • The combination of trade war concerns and previous AI-related market pressure created challenging conditions for meme coin valuations.

Cryptocurrency markets faced severe turbulence as President Trump’s trade war announcement triggered a widespread selloff, particularly affecting meme coins and speculative assets. The impact was especially pronounced during weekend trading, with several popular tokens experiencing losses exceeding 20%.

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Dogecoin, the original meme cryptocurrency, exemplified the market’s volatility. After reaching a three-year high of $0.48 post-election, the token plummeted to $0.21 before recovering to $0.29. Despite the recent bounce, DOGE remains down 12% over the past week.

The announcement of tariffs on Canada, Mexico, and China created Ripple effects across digital assets, with meme coins bearing the brunt of the selloff. According to Matt Mena, crypto research strategist at 21Shares, “This effect is particularly pronounced on weekends when traditional markets are closed, often leading to exaggerated price moves in crypto.”

The data from Dune Analytics shows trading volume on Pump.fun, a major Solana-based meme coin platform, dropped 39% to $193 million, indicating diminishing investor appetite for high-risk assets.

Austin King, co-founder of Omni Network, explained the market dynamics: “Most investors are going to be less interested with high-risk, speculative assets like meme coins as threats of a global trade war emerge from the world’s largest economy.”

The situation was further complicated by recent developments in the AI sector, as China’s DeepSeek AI launch had already pressured tech-themed meme coins. Toe Bautista, GSR Research Analyst, noted that the launch of the TRUMP token last month had already created challenging conditions, causing many meme coins to lose 50% of their value as liquidity shifted toward the presidential-themed token.

As negotiations with Mexico and Canada led to temporary tariff delays, some larger cryptocurrencies showed signs of recovery. However, analysts suggest the meme coin sector may face continued pressure as investors reassess risk exposure in light of broader macroeconomic uncertainties.

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