- Bitcoin has dropped to the $80,000 level, dragging down Dogecoin and other cryptocurrencies.
- Cryptocurrencies are experiencing negative impacts from global trade wars and the prevailing economic uncertainty.
The cryptocurrency market has faced a notable downturn in recent weeks, with Bitcoin (BTC) plummeting below the $80,000 mark. Also, the global crypto market capitalization has dropped by a noble 4.8% within a single day.
This downward trend has spread across the market, affecting other major cryptocurrencies, such as Dogecoin (DOGE), which has recorded significant losses: 17% weekly and 24% monthly.
Analysts attribute the market’s downtrend to escalating global trade tensions, particularly between the United States and the European Union (EU), as both regions have introduced new tariffs, creating an environment of uncertainty that has left investors cautious.
The recent market correction began after the US announced new tariffs on the EU, prompting the EU to retaliate with similar measures. This trade war has made investors nervous, leading them to pull back from risky assets like cryptocurrencies.
Dogecoin, which has a huge community backing and is often seen as a speculative asset, has been hit particularly hard, with its price dropping by over 24% in the past month.
What’s Next for Dogecoin?
According to CoinCodex, Dogecoin could see a significant price rally in the coming weeks, potentially reaching $0.60 by early April. This would represent a 300% increase from its current price.
Crypto analyst Ali also shares the same opinion. He stated that DOGE might be setting itself up for a comeback.
Investor sentiment around #Dogecoin $DOGE is at its most negative in over a year. Historically, extreme fear has set the stage for major reversals. This could be a prime opportunity to be a contrarian!
However, CoinCodex also predicts that DOGE’s price may not stay above $0.60 for long, as a correction could follow the rally.
According to our current Dogecoin price prediction, the price of Dogecoin is predicted to rise by 234.68% and reach $ 0.540377 by April 10, 2025. Per the technical indicators, the current sentiment is Bearish while the Fear & Greed Index is showing 24 (Extreme Fear). Dogecoin recorded 11/30 (37%) green days with 13.03% price volatility over the last 30 days. Based on the Dogecoin forecast, it’s now a bad time to buy Dogecoin.
Despite these challenges, some positive developments in the US could benefit the crypto market. President Donald Trump officially signed an executive order establishing a Strategic Bitcoin Reserve last week. This, in turn, could boost confidence in cryptocurrencies like DOGE in the long term.
However, for now, investors remain cautious due to ongoing economic uncertainty.
While this bullish outlook offers hope, there’s no guarantee DOGE will hit these targets. Macroeconomic factors, such as global trade wars and economic instability, continue to pose challenges for the crypto market.
Until these issues are resolved, the market may remain volatile, with cryptocurrencies struggling to gain momentum. At the time o writing DOGE is trading at $0.1616, down 7% in the last 24 hours, with a trading volume of $2.54B.