• The cryptocurrency market has seen a decline in the value of Dogecoin (DOGE) due to fear, uncertainty, and doubt surrounding the collapse of Silicon Valley Bank and Silvergate.
• DOGE has lost 11% of its value in the last 24 hours alone, with a 31% decline in the last 30 days and 24% in the last two weeks.
• Bitcoin price is also affected by this crisis, falling from $21,000 to $20,372 at the time of writing.
Cryptocurrency Market Crash
The cryptocurrency market has seen a sharp decline in prices as massive amounts of fear, uncertainty, and doubt swept across the market after Silicon Valley Bank collapsed on Friday morning. This was precipitated by a bank run and capital crisis that resulted in the second-largest failure of a financial institution in US history. The crypto-friendly Silvergate bank was also affected by this crisis which triggered massive market sell-offs among meme tokens such as Dogecoin (DOGE).
Dogecoin Price Plummets
At the time of writing, DOGE was trading at $0.0640 indicating a 21% decline in value over seven days. Additionally, data from Coingecko shows that DOGE has lost 11% of its value within 24 hours alone. In addition to this large dip over 30 days and two weeks have been noticed with only 2% increase since January 2023. Furthermore, trading volume for DOGE surged by almost 30%, indicating an impending intense sell-off period will soon follow as investors panic.
Bitcoin Prices Affected
The macroeconomic uncertainty surrounding Dogecoin due to its speculative nature and lack or fundamental value has had ripple effects on other cryptocurrencies such as Bitcoin – which is currently the highest crypto based on market cap – saw its price falling from $21K to around $20K at present. This demonstrates how even large cryptos are not immune to these sudden capital crises that can occur without warning or explanation leaving investors stunned.
Cause Of Crisis
The collapse of Silicon Valley Bank was partly attributed to Federal Reserve’s forceful hike in interest rates over previous year which left many banks holding long term treasuries that appeared low risk when interest rates were close to zero – now that Fed has hiked interest rates these investments have become worthless resulting huge losses for banks involved leaving them unable to pay back their deposits thus triggering bank run leading us into current situation where crypto markets are down especially those involving meme tokens such as Dogecoin (DOGE).
In conclusion it is clear that this sudden crisis could have major implications for both traditional banking systems and cryptocurrencies alike if similar events transpire again any time soon causing further drops and instability in markets worldwide thus making it more important than ever before for investors to be aware of potential risks associated with investing so they can make informed decisions regarding their investments should difficult times arise once again anytime soon