Recent tensions from President Trump's trade war have sent shockwaves through the crypto market, affecting popular meme coins like Dogecoin. These coins had already been facing significant losses, with many plummeting over 20% in value. Dogecoin, after peaking at $0.48 post-election, fell to nearly $0.21 and remains 12% down for the week despite a recent bounce back. Trade wars have led to a risk-off environment for investors, making high-risk assets like meme coins less appealing. As institutions capitalize on liquidity opportunities, the volatility of meme coins is exacerbated. Analysts note that the entrance of new meme coins has also become increasingly difficult due to a liquidity drain. Trump's recent tariff negotiations have further pressured these speculative assets, causing a liquidity shortage as investors withdraw from high-risk trades.

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