At the beginning of the week, the prices of popular cryptocurrencies Dogecoin 
$0.237764 and Shiba Inu experienced a sudden and sharp decline. The general downturn in global markets, coupled with the new import tariffs announced by the U.S. and liquidation pressures, are identified as the primary reasons for this drop. Investors continue to adopt a cautious approach in an environment marked by rising uncertainty.
Global Developments Impacting the Market
The new import tariffs announced by U.S. President Donald Trump have exerted pressure on both financial markets and cryptocurrencies. The potential effects of these tariffs on global supply chains and inflation have heightened investors’ risk perception. Experts emphasize that such policy moves directly impact volatile assets like cryptocurrencies.
The cryptocurrency market typically responds quickly to macroeconomic developments. The selling wave seen in Dogecoin and Shiba Inu following Trump’s tariff announcement confirms this trend. Simultaneously, the downward trend in global stock markets has temporarily reduced demand for cryptocurrencies.
Liquidations and the Drop in Futures Market
In the past 24 hours, millions of dollars in liquidations have occurred in Dogecoin. While the liquidation volume for Shiba Inu remained lower, the price drop followed a similar trend. The increase in liquidations has intensified selling pressure by triggering investors’ stop-loss orders.
Futures market data shows a rapid decrease in open positions. The 33% drop in Dogecoin and the 46% decline in Shiba Inu reflect a loss of investor confidence in these assets. Market participants interpret the shrinking trading volumes as an indication that volatility may increase.
Typically, increased liquidations in the cryptocurrency market are observed during periods of extreme price movements. The current situation suggests that investors should avoid short-term speculation.
