- Trump’s tariff announcement drove Dogecoin’s sharp decline.
- Excessive leverage contributed to the crypto market crash.
- Institutional interest and whale activity helped stabilize prices.
Dogecoin experienced a 50% flash crash in October after the Trump administration declared 100% tariffs on Chinese imports, shaking the cryptocurrency market.
The market downturn highlighted Dogecoin’s sensitivity to macroeconomic factors and excessive leverage, sparking debates on risk management and institutional interest influencing future stability.
Dogecoin’s value dropped by 50% in October 2025 after the Trump administration announced 100% tariffs on Chinese imports, triggering a macro shock. Analysts note the asset’s sensitivity to economic changes and the impact of excessive leverage.
Analysis
Impact of Tariffs and Market Response
The announcement from ex-President Donald Trump significantly affected market sentiment, leading to a rapid decline in Dogecoin’s price. Institutional investors and whales stepped in to stabilize the market, with key figures criticizing speculative behaviors. Billy Markus, Dogecoin’s co-founder, shared his perspective:
“Excessive optimism and leverage contributed to this crash. Uptober hype blinded retail traders to actual risk. Smart money waits for real support, not memes.”
Liquidations and Price Fluctuations
The market experienced large-scale liquidations, wiping out $19 billion in leveraged positions across the crypto sector. The price of Dogecoin fell from $0.22 to $0.11 before stabilizing at around $0.19-$0.20. This event led to substantial repercussions, with other cryptocurrencies like BTC and ETH also experiencing sharp declines. Billy Markus, Dogecoin’s co-founder, emphasized the risks posed by excessive optimism and leverage in recent market trends.
Looking Forward: Stability and Volatility
Analysts point to historical trends, noting that similar events have led to major market rebounds following initial crashes. Institutional ETF activity and whale accumulation indicate a potential floor for Dogecoin. Future financial outcomes could see volatility continue as the market adjusts to macroeconomic changes. Institutional investment methods may support a more stable crypto environment in the long term.
