• The cryptocurrency market has seen a sharp decline in the value of Dogecoin (DOGE) as massive amounts of fear, uncertainty, and doubt swept across the market following Silicon Valley Bank’s collapse.
• DOGE is trading at $0.0640, indicating a 21% decline in the last seven days. Additionally, data from crypto market tracker Coingecko shows that the dog-themed coin has lost 11% of its value in the last 24 hours alone.
• The macroeconomic uncertainty surrounding DOGE is due to its highly speculative nature and lack of fundamental value.
Dogecoin Plummets Following Collapse Of Silicon Valley Bank
The cryptocurrency market has been hit with a wave of fear, uncertainty, and doubt after Silicon Valley Bank collapsed on Friday morning resulting in the second-largest failure of a financial institution in US history. This collapse coupled with that of crypto-friendly bank Silvergate caused a massive sell-off across top meme tokens leading to Dogecoin (DOGE) plunging by nearly 11%.
Trading Volume Surge Indicates Impending Sell Off
At the time of writing, DOGE was trading at $0.0640, indicating a 21% decline in the last seven days. Data from crypto market tracker Coingecko also shows that the dog-themed coin has lost 11% of its value within 24 hours alone and further declines were seen over two weeks (-24%) and one month (-31%). Despite these losses, however, DOGE recorded an increase of 2% since January 1st 2021. Its trading volume has surged by almost 30%, which indicates an impending intense sell off in the near future.
Failure Of Silicon Valley Bank Causes Market Turmoil
The cause for this fall can be largely attributed to the sudden implosion of Silicon Valley Bank as it suffered losses due to Federal Reserve’s forceful hike in interest rates over previous year along with amassing long term treasury bonds when interest rates were close to zero – resulting in unrealized losses for banks as their worth dropped drastically. Such macroeconomic uncertainty surrounding DOGE is due to its highly speculative nature and lack of fundamental value; making it unpredictable and subject to sudden shifts in sentiment.
BTC Price Also Falls Due To Crisis
Crypto markets are not immune to such events either – with Bitcoin –the biggest crypto by market cap – seeing its price fall from $21k level down to $20372 at press time as BTC investors brace themselves for next episode on ongoing crisis started by SVB’s collapse .
Conclusion
In conclusion, Dogecoin continues to remain volatile given its high speculation rate combined with lack fundamental value; causing prices to fluctuate wildly depending on investor sentiment towards it at any given moment; especially when other major financial institutions suffer similar fates like what happened with Silicon Valley Bank recently .