Dogecoin fell by over 8% over the weekend and also took lead in a wide scale crypto sell off which in turn was brought by growing U.S China trade tariffs and large scale Bitcoin selling by whales. As the situation worsened investors left riskier assets which in turn had hard hit altcoins.
On May 31st 2025 the crypto world saw a wide scale drop. Crypto heavy weights did not do so great with Bitcoin falling 2% to trade below the $104K level although still relatively strong. Ethereum also saw a 4% drop, and at the same time BNB, Solana and XRP lost between 2 to 5 percent of their value. As for the meme coins which are known for crazy price action we saw some very large moves. Dogecoin and Pepe had a flash sell off with drops as large as 12% which was very shocking even to the more experienced traders.
CoinDesk’s top 20 crypto index saw a drop of 4.2% which is one of the most severe single day falls we have seen this month. Also of note is that Cronos Network’s CRO went the other way and saw a 12% increase, a welcome break from the overall downward trend.
Dogecoin Selloff Mirrors Bitcoin Whale Moves
Dogecoin’s fall over the weekend saw large scale movement from Bitcoin whales which were previously stockpiling this spring they began to sell into the market. This set the stage for a collective action which saw other players in the market follow suit.
Whale activity which is a key indicator of what is to come didn’t perform in a different fashion this time. We saw a transition from accumulation to distribution which hit Dogecoin as well as altcoins. Over the weekend market depth was reported as thin which in turn made each move more dramatic. As Bitcoin went down Dogecoin and other meme coin competitors took the brunt of it.
Bitcoin futures open interest went up by 51% and options volume saw a 126% increase. These jumps indicated a hedging frenzy which saw both retail and institutional players prepare for more turbulence.
Pressure from U.S.-China Tensions
Dogecoin’s drop was also in response to macro issues. U.S.-China trade tensions flared up. President Trump said China was in breach of trade agreements which in turn led to a new round of tariff increases. Steel and aluminum saw the rates double and also we saw new restrictions put on tech related exports.
Immediate was the market reaction. Investors sold off across the board and cryptocurrencies which are often classified as risk assets saw large scale decline. Dogecoin which may have had public support didn’t0.1.5 avoid the issues.
China’s economy which put more wood to the fire. In May manufacturing shrunk again with the PMI below 50. Also very small improvements in export orders did not seem to improve sentiment. The downturn did also hit crypto very hard which was at that time also an issue due to political uncertainty.
Market Awaits Calm After Dogecoin Plunge
Doges’ wild weekend drop which broke a long term trend of the present market’s behavior. While Bitcoin held steady at $103K, altcoins did not do so well. At this point analysts are watching if Dogecoin will make a recovery or if in fact we will see more from the whales and reports of trade issues which may push the crypto to fall further.
Crypto market is still very volatile. As long as U.S.-China relations do not improve and whales continue to sell off, Dogecoin’s price may have trouble. That said with high options volume and technical support present a reversal is a possibility.
