Dogecoin Drops Sharply After Donald Trump’s Re-election
When Donald Trump secured re-election in 2024, Dogecoin briefly soared as crypto bulls anticipated a historic rally. The coin, born from a meme, approached its prior highs with enthusiasm. At its peak, Dogecoin had a market cap of $24.7 billion. Yet, the reality did not meet expectations. This week, Dogecoin dropped to $0.14—its lowest level in months.
Elon Musk’s D.O.G.E. Ties Fail to Rescue Dogecoin
Many investors expected Elon Musk’s connection to Donald Trump’s Department of Government Efficiency (D.O.G.E.) to boost the token. Surprisingly, Dogecoin continued falling. It now trades at $0.16, down more than 77% from its all-time high of $0.73. Despite Musk’s influence, Donald Trump’s administration has not provided the support needed to sustain the memecoin’s momentum.
Donald Trump’s Token Overshadowed Memecoin Mania
Dogecoin was swept up in the 2025 memecoin frenzy, which climaxed with Donald Trump launching his own token. That singular event marked the top of the memecoin wave. Since then, traders have rotated out of meme-based assets, signaling a cooling-off period. According to analyst Jake Kennis, Trump’s launch was “quite literally the most notable memecoin event possible.”
Memecoins Struggle Amid Trump-Era Tariff Uncertainty
The broader crypto market is grappling with Donald Trump’s aggressive trade policies and escalating tariff risks. These macroeconomic tensions have weighed heavily on risk assets. Dogecoin, lacking intrinsic utility, has been hit harder than most. Even with strong branding and community, it’s now clear that political ties to Donald Trump alone aren’t enough to fuel a sustainable rally.
Loyal Communities Still Back Dogecoin and SHIB
Despite the recent downturn, Dogecoin and Shiba Inu remain popular among retail traders. Their viral appeal and dog-themed branding continue to attract attention. But experts agree that, without a significant new catalyst, their price potential may remain capped. According to Alan Orwick, Trump’s naming of D.O.G.E. might be the highest-profile moment Dogecoin will see this cycle.
What Donald Trump’s Influence Means for Memecoins
Donald Trump’s public embrace of crypto—particularly through memecoins—sent shockwaves through digital markets. However, the hype has not translated into lasting value for most tokens. As Jake Kennis put it, once major bullish events occur, traders ask: “What’s next?” For Dogecoin’s, the lack of a new driver has left it vulnerable to steep corrections.
Can Dogecoin Rebound Under Donald Trump’s Influence?
Donald Trump’s administration could still influence crypto regulation and innovation positively. If clear guidance or favorable legislation emerges, Dogecoin’s and other altcoins might benefit. But for now, the market’s sentiment remains cautious. Without a fresh injection of interest or capital, even Trump’s celebrity backing can’t lift prices in a bearish environment.