The US President Donald Trump’s tariff announcement Saturday targeting the country’s major trading partners, including China, Mexico, and Canada, led to a bloodbath in the crypto market, seriously wrecking Dogecoin and all major meme coins and altcoins.
What Caused the Weekend Bloodbath?
According to many crypto analysts, the weekend downturn that saw the entire crypto market liquidate over $120 million from SOL and ADA in just 24 hours and Dogecoin decline to a new low from $0.3250 to a support level of $0.2750 was a direct response to the announcement. Analysts are worried that the bearish trend could cause pain ahead for investors if the same reaction continues.
At the time of writing, the price of DOGE was slightly higher than the $0.280 level, and experts believe the higher resistance level could be close to the $0.250 level. Also included in the bloodbath supposedly caused by the new Trump Tariff announcement was his $TRUMP meme coin that shed off its post-election hype. The $TRUMP meme coin shed off 12% of its value in the period, with the CoinDesk 20 Index showing at least 20 digital assets lost an average of 21% of their values.
Irony of Dip Caused by “Crypto-President”
In what could look like an ironing twist of events, the panic that hit the digital asset market thanks to the latest Trump Tariff announcement has been caused by the US’s “crypto President.” Donald Trump announced over the weekend that the United States would impose 25% tariffs on goods imported from their major trading partners, specifically Mexico and Canada. As would be expected, the ever-sensitive traders considered the policy decision a bad sign as far as the global economic market is concerned, leading to a dip in global crypto prices.
Trump Defends His Tariff Plans
In defending the proposed tariffs following an op-ed from leading news magazine The Wall Street Journal called the proposed escalation “the Dumbest Trade War in History,” the US President didn’t take the criticism with folded hands. Instead, Trump took to his Truth Social and fired back a response that doubled down on his position. Trump stated:
“Anybody that’s against tariffs, including the Fake News Wall Street Journal and Hedge Funds, is only against them because these people or entities are controlled by China.”
Adding that the tariffs were long overdue, he stated that it was wrong for them to have been replaced by the 1913 income tax system. He added:
“The response to tariffs has been FANTASTIC!”
Trump’s Project’s Also Affected
Apart from DOGE, the king of meme coins that took a 30% dip due to the Trump tariff announcement, the flagship cryptocurrency Bitcoin suffered an 8% dip that saw it slide below the $92K mark. As expected, BTC brought down the entire altcoin brigade, with XRP crashing 28% in the Asian market to sell at $1.82, followed by Solana (SOL) losing 13% to trade at $184.
The weekend XRP price took the token far below the $3 all-time high it achieved in December 2024. Data from Spot on Chain shows that Trump’s DeFi project World Liberty Financial was also not spared, having crashed nearly 21% after liquidating at least $51.7 million. The Trump tariff announcement also saw Ether dip 24.4% to lose $36.7 million, while WBCT lost $8 million after crashing 12.1%.
Conclusion
Trump’s announcement triggered a bloodbath that affected Dogecoin at a time when Grayscale’s DOGE ETF filing went live from Grayscale, sparking optimism of a rally to $1. Grayscale becomes the third asset manager to file to offer a Dogecoin ETF, sparking bullish optimism within the meme coin community. Only time will tell whether the current bloodbath is temporary or it will be a launching pad for better times ahead.
Frequently Asked Questions (FAQs)
What is DOGE?
Dogecoin is a popular meme coin that was initially seen as a joke. The decentralized currency can be traded and used on the internet for various purposes, and there is a total proposed circulation of a 100-billion coin limit.
What is the Purpose of DOGE?
The meme coin was initially designed to reward meme creators. However, its purpose has since evolved, and it can now be spent. It’s primarily used to tip bots, among other uses.
Where can you buy DOGE?
There are many ways to buy DOGE, but you can mainly access it from over 348 exchanges that facilitate its buying, selling, and trading.
Is DOGE Legal?
The legality of DOGE and other cryptocurrencies is debatable in many jurisdictions. However, DOGE is 100% legal, and you can use it for legal purposes.
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