DOGE Burns Faster Than Petrol, Down 14%
Dogecoin dropped more than 14% over the last day as the latest economic outlook from the Federal Reserve has sparked a wider market decline. DOGE’s drop parallels Bitcoin’s drop below $100,000 this week, although meme coins have typically seen more severe declines than other cryptocurrency assets.
The meme coin fell to $0.30, but trading volume increased by 67% to $10 billion as holders moved their bags,. It is down 37% from its peak of $0.47 in 2024. Dogecoin’s market capitalization is $46 billion, which makes it the seventh-largest cryptocurrency by market valuation.
Powell’s pessimistic remarks regarding higher-than-expected inflation and unemployment forecasts for 2025 rocked risk assets on Wednesday, with cryptocurrency suffering the most from the market’s initial response.
Market participants were alarmed by the Fed’s prediction, which implied higher interest rates for longer periods.
This affected speculative assets, such as meme coins, which exhibit increased sensitivity to macroeconomic signals. Significant outflows caused Dogecoin to decline, especially on Binance, where over $83 million left the market while trading volume increased 74% to $1.85 billion, according to data compiled by CoinGlass across major exchanges.
The liquidation data points to a general market exodus rather than activity specific to any one exchange with concentrated selling pressure and negative net flow on most major exchanges (except Bybit and Bitstamp).
The DOGE/USDT pair on Binance and OKX also felt the heat as prices dropped over 20% over the last week, according to exchange-wide trading patterns that show consistent selling from late November through December.
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