Dogecoin (DOGE), Shiba Inu (SHIB), and XRP have unexpectedly crashed again, experiencing another bout of bearish momentum and starting February in the negative. This significant decline was driven by a major drop in the Bitcoin price following Donald Trump’s Tariff plans and the controversy with DeepSeek.
Why Dogecoin, Shiba Inu, And XRP Crashed Again
Three top cryptocurrencies have experienced significant volatility, recording a price crash that has pushed them to respective lows. According to data from CoinMarketCap, the price of Dogecoin has declined by over $6.6% in the past week, retracing back to the $0.32 level.
Earlier this year, the meme coin had been performing relatively well, recording single-digit gains due to the bullish hype surrounding the concluded Trump Presidential inauguration in the United States (US). Following its price rally, the cryptocurrency experienced a pullback but recovered slightly after consolidating.
Similarly, the Shiba Inu and XRP price has crashed, declining by 5.3% and 2.43%, respectively. The cryptocurrencies recorded this significant drop in price over the past week, experiencing weakening momentum as market volatility increased.
The price crash in Dogecoin, Shiba Inu, and XRP has been attributed to recent news of President Trump’s tariff plans on China, Mexico, and Canada. At a press conference on January 31, White House Press Secretary Karoline Leavitt announced that the Trump administration plans to impose 25% tariffs on Mexico and Canada and a 10% tariff on China.
As the news of the US President’s Tariff plans spread, the price of Bitcoin had plummeted significantly, triggering bearish momentum across numerous cryptocurrencies. Among the altcoins affected by this decline in Bitcoin were Dogecoin, XRP, and Shiba Inu.
The impact of the tariff announcement on the Bitcoin price stems from its influence on the timing of rate cuts, which have historically affected BTC’s price trajectory. In addition, Bitcoin also experienced a massive price crash after DeepSeek, a Chinese AI company, overtook OpenAI’s ChatGPT. This unexpected development led to substantial market sell-offs, causing Bitcoin to plummet.
While the pioneer cryptocurrency has since recovered some gains and is currently trading at $101,857, other altcoins are still in the red, experiencing significant volatility and price declines.
Some Positives For Dogecoin, XRP, and Shiba Inu
Despite the recent price declines, there have been some positives for Dogecoin, XRP, and Shiba Inu. The Dogecoin price continues to maintain bullish sentiment amongst market analysts, with ‘Dogegod,’ an analyst on X (formerly Twitter), predicting a potential surge to new all-time highs of $8.
On the other hand, Shiba Inu has experienced a significant increase in token burns. Following a more than 7,000% burn rate increase in the past 72 hours, the Shiba Inu team initiated another large-scale burn, offering to remove 1 billion SHIB from circulation permanently.
Lastly, on January 31, XRP received noteworthy praise from the Chief Executive Officer (CEO) of Ripple, Brad Garlinghouse. Garlinghouse emphasized that Q4 2024 was an impressive period for XRP, with significant milestones achieved, such as hitting a market cap of over $100 million, the launch of the RLUSD stablecoin, the issuance of multiple XRP-related ETP filings in the US, and others.
Featured image from Unsplash, chart from Tradingview.com
Source: https://bitcoinist.com/dogecoin-shib-and-xrp-crashed/