The stock market started a rough start in 2025. From March 4, the S&P 500 And Nasdaq Composite Retail by 1.5% and 5.2% respectively.
Broadly speaking, when the stock market performs poorly, investors can move their funds to alternative assets such as raw materials or cryptocurrency. So far this year, however, the crypto markets have not been too lush. The top two cryptocurrencies, Bitcoin And Ethereumhave fallen by 7% and 36% respectively, and others have followed in their wake.
Participating in his cohorts in the crypto sale is Dogecoin (Crypto: doge). After an increase of 251% in 2024, the price this year has been signed by 36% this year.
But Dip In Dogecoin a smart idea now?
Although the Dogecoin price rose considerably last year, the graph below should paint a clearer picture of what really happened with the cryptocurrency. As you can see, the vast majority of Dogecoin took place in 2024 during the last two months of the year.
The rising price action of Dogecoin can be reduced to the presidential election. During the then candidate Donald Trump’s campaign, Tesla CEO Elon Musk emerged as an important surrogate and massive donor for the Republican nominee. One of the factors that influenced Musk’s relationship with Trump was their shared view that the federal budget had been blown up. As a result, Musk drove the idea of creating a team that was aimed at identifying wasting expenses that could be cut.
The name he and Trump donated to that initiative: the Department of Efficiency of the Government (Doge).
If you look at the price diagram up close, you will notice that the price of Dogecoin actually started to fall by the end of 2024. It has fallen by 53% since 1 December.
If you have followed Musk prior to the elections, you may know that the entrepreneur has endorsed a joke several times in the past. It is likely that the comic affinity of Musk played a role when a name was chosen for the cost -saving initiative. But at the end of the day, Doge is no more than a smart acronym. It has no tangible relationship with the cryptocurrency.
Moreover, Dogecoin remains a meme coin with little to no use in the real or digital worlds. In my opinion, the sale that started in December was the first Domino that dropped. While investors started thinking about the fact that the coin had risen on pure hype that was not related to any real worthy catalysts, the bubble began to empty.