The Dogecoin price crashed to as low as $0.31 this week and is still at risk of losing the psychological $0.3 level. This price decline is due to several factors, including developments on the macro side. 

Why Did The Dogecoin Price Crash To $0.31

CoinMarketCap data shows that the Dogecoin price is down over 8% and has crashed to as low as $0.31 this week. This price decline has happened due to several factors, including the FOMC decision coming up today, which has created some uncertainty in the market. The US Federal Reserve is set to announce the Fed rate cut decision, whether or not they plan to cut rates. 

CME FedWatch data shows that there is a 99.5% probability that the US Fed will keep rates unchanged, which has sparked a bearish sentiment in the broader crypto market. The Fed keeping rates unchanged is bearish for the Dogecoin price, as investors are less likely to invest in risk assets like DOGE. 

The anticipation of rates remaining unchanged already contributed to the widespread selloff witnessed in the crypto market earlier in the week, which also impacted the Dogecoin price. Another reason why there has been a wave of selloffs in the crypto market, leading to the Dogecoin price crash, is the rise of the Chinese AI startup DeepSeek.  

DeepSeek AI gained widespread popularity this week, which immediately sparked a wave of sell-off for US tech stocks, with trillions of dollars wiped out from the US stock market. The crypto market also took a hit as a result, leading to this downtrend for the Dogecoin price. It is worth mentioning that the Bitcoin price had also dropped below $100,000 earlier in the week. As such, DOGE was bound to also witness such downward pressure g

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Author: Scott Matherson