#TrumpTariffs
Why DOGE Traders Moved $200M in 24 Hours After Trump's Auto Tariffs Announcement
On Thursday, Dogecoin fell below $0.20, dropping 2.4% from its 24-hour high, following news of Trump's 25% vehicle import tariff. This announcement impacted both Tesla, linked to Elon Musk, and Dogecoin, as traders reacted to the potential consequences. Over $200 million in DOGE futures contracts were closed, lowering open interest to below $2 billion.
In the days leading up to Thursday, US President Donald Trump's statements caused significant price fluctuations in Dogecoin (DOGE). His comments influenced market sentiment, creating increased volatility for the cryptocurrency.
Why Did Dogecoin Drop?
The market had been optimistic earlier when Trump voiced his support for the official TRUMP meme token on Monday. By Tuesday, memecoins like DOGE, PEPE, and SHIB saw a 5% rise, pushing their total market cap to $62 billion.
However, the mood shifted on Wednesday when Trump proposed a 25% tariff on vehicle imports, starting April 2. Elon Musk warned that this measure could hurt Tesla's profits, leading to a 5% drop in Tesla's stock price within 24 hours, although it recovered by 6% on Thursday.
As markets digested Trump's tariff plans, Dogecoin dropped 2.4% on Thursday, reflecting negative sentiment towards Musk-linked assets.
Deeper Analysis:
A look at Dogecoin’s derivatives data shows traders pulling funds aggressively, signalling increased caution amid growing volatility. Trading volume also dropped 13.82% to $4.59 billion, indicating lower liquidity. The long/short ratio was 0.9673, showing that short sellers are gaining momentum, which is pushing the price down. Over the past 12 hours, $1.3 million in long positions were liquidated, while shorts only saw $739,620 in losses, signalling a faster unwinding of long positions.
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