Dogecoin, Shiba Inu, and XRP all took a nosedive recently, kicking off February with some pretty bad news for investors. Let’s break down what happened.
The Big Crash
These three cryptocurrencies saw some serious price drops. Dogecoin fell over 6.6% in a week, dropping back to around $0.32. Shiba Inu wasn’t far behind, losing 5.3%, and XRP dipped by 2.43%. This volatility hit them hard.
Why the Drop? Blame Bitcoin (and Trump!)
The main culprit? A big drop in Bitcoin’s price. This was triggered by two main events:
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Trump’s Tariff Plans: President Trump’s announcement of new tariffs on China, Mexico, and Canada sent shockwaves through the market. This affected Bitcoin’s price because of its influence on interest rate cuts, which historically impact Bitcoin.
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DeepSeek’s Rise: The Chinese AI company DeepSeek surpassing OpenAI’s ChatGPT also caused a significant sell-off in the crypto market, further pushing Bitcoin down. While Bitcoin has since recovered somewhat, other altcoins like Dogecoin, Shiba Inu, and XRP are still feeling the sting.
A Few Bright Spots
Despite the downturn, there’s some positive news for these cryptos:
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Dogecoin’s Bullish Outlook: Some analysts, like “Dogegod” on X, are still predicting a huge surge for Dogecoin, potentially reaching new all-time highs.
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Shiba Inu Burns: The Shiba Inu team is actively burning tokens (removing them from circulation), recently completing a massive burn of 1 billion SHIB.
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Good News for XRP: Ripple’s CEO, Brad Garlinghouse, highlighted XRP’s strong performance in the last quarter of 2024, including hitting a $100 million market cap and launching a new stablecoin.
While the recent price drops are concerning, the future of these cryptocurrencies remains uncertain. The market is volatile, and these are just a few of the factors at play.
