Dogecoin and Shiba Inu Plunge Over 10% Amid Market Turbulence
February 25, 2025
In a significant downturn, popular meme-based cryptocurrencies Dogecoin (DOGE) and Shiba Inu (SHIB) have each experienced declines exceeding 10% in the past 24 hours. This sharp drop is part of a broader cryptocurrency market correction influenced by recent geopolitical and economic developments.
Market Performance
As of 4:43 PM IST on February 25, 2025, Dogecoin is trading at $0.2016, reflecting a 12.08% decrease from its previous close. The cryptocurrency reached an intraday low of $0.1966, with a high of $0.2321. Similarly, Shiba Inu is priced at $0.0000135, marking a 7.98% decline over the same period. SHIB's intraday trading ranged between $0.00001313 and $0.00001485.
Contributing Factors
The recent downturn in these meme coins can be attributed to several key factors:
- Geopolitical Tensions and Economic Policies: The announcement of new tariffs by President Donald Trump has introduced uncertainty into global markets. The administration plans to impose a 25% tariff on imports from Canada and Mexico, alongside a 10% tariff on goods from China. These measures have raised concerns about potential trade wars and their impact on the global economy, leading investors to adopt a risk-averse stance.
- Broader Cryptocurrency Market Correction: The overall crypto market has been experiencing a correction, with Bitcoin consolidating below the $100,000 mark. This downward trend has had a cascading effect on altcoins, including Dogecoin and Shiba Inu. The decline in Bitcoin's value often influences investor sentiment across the cryptocurrency spectrum.
- Increased Selling Pressure: Data indicates a surge in the trading volumes of both DOGE and SHIB, suggesting heightened selling activity. Dogecoin's daily trading volume spiked by 148%, reaching $2.9 billion, while Shiba Inu's volume rose by 160%. This increased activity points to investors offloading their holdings amid market uncertainty.
Investor Outlook
The current market dynamics have led to a cautious atmosphere among investors. Analysts advise closely monitoring geopolitical developments and their potential ripple effects on the global economy and cryptocurrency markets. While meme-based cryptocurrencies like Dogecoin and Shiba Inu have previously demonstrated resilience, their susceptibility to broader market trends necessitates careful consideration.
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In conclusion, the recent declines in Dogecoin and Shiba Inu prices underscore the interconnectedness of global economic policies and cryptocurrency valuations. Investors are encouraged to stay informed and exercise prudence in response to the evolving market landscape.
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