• The value of Dogecoin (DOGE) has seen a decline due to the recent collapse of Silicon Valley Bank and Silvergate, two crypto-friendly banking institutions.
• Crypto market tracker Coingecko reveals that DOGE has lost 11% of its value in the 24 hour period and 31% in the last 30 days.
• Bitcoin has also seen a decrease in price, dropping from $21,000 to around $20,372 at the time of writing.
What Caused Dogecoin’s Price Decline?
The cryptocurrency market has seen a decline in the value of Dogecoin (DOGE) as massive amounts of fear, uncertainty, and doubt swept across the market after Silicon Valley Bank collapsed on Friday morning as a result of a bank run and a capital crisis precipitated the second-largest failure of a financial institution in the history of the United States. The collapse of crypto-friendly bank, Silvergate, has also triggered market sell-offs with the market cap of top meme tokens down by nearly 11% in the 24-hour period. The trading volume of DOGE has surged by almost 30%, indicating an impending intense market sell-off.
DOGE Prices Over Time
At the time of writing, DOGE was 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 meme token has declined by 31% in the last 30 days and by 24% in the last two weeks, with only a 2% increase since the beginning of 2023.
Impact on Bitcoin
For its part, Bitcoin –the biggest crypto in terms of market cap – saw its price falling fromthe $21,000 level , trading at $20 , 372 atthe timeofwritingas BTC investorsbrace forthe next episode inthe ongoing crisisthat befell Silicon Valley Bank .The macroeconomic uncertainly surrounding DOGE is due toits highly speculative natureand lack offundamentalvalue . Itsvalue islargely drivenby demandfrominvestorsandtraders ,making itunpredictableandsubjecttosuddenshiftssentinment .
Thecollapseof SVBwas partlyattributedto Federal Reserve’sforceful hikeininterestratesovertheprevious year .Banks hadamassedlongterm Treasuries thatseemedlowrisk wheninterest rateswerealmostatzero .However ,asthe Fedintensified interestratestomanage inflation ,theworthoftheseinvestmentsdropped ,resultingin unrealized lossesforthebanks .