Stock markets have gone through several volatile cycles, inflation has put pressure on households and businesses, and global economic uncertainty is still very much here. Surely, 2026 is already shaping up as another year when people are looking for alternatives to traditional finance. This is not as sudden as the 2020 COVID-19 shock, but the conclusion is similar: the existing financial system still has weak spots, and users keep looking for more flexible ways to store, move and grow capital.
04.07.2024
Over the past 24 hours, Dogecoin has seen a sharp wave of liquidations, with $4.92 million worth of positions wiped out — a big moment for the meme coin sector. DOGE’s price dropped 7.89% to $0.1121, sparking concerns about the health of meme coins in a broader crypto downturn. The sell-off comes alongside Bitcoin’s recent struggles and growing political factors that are influencing overall market sentiment.
Heavy sell-off hits Dogecoin
In just one day, traders dumped about $4.92 million worth of Dogecoin. While that figure pales compared to Bitcoin’s $90.06 million liquidation, it’s still a sizable blow for DOGE. The shakeout saw 41,554,054 DOGE liquidated, with the majority coming from long positions — totaling around $4.87 million.
This pressure has pushed Dogecoin down 7.89% to $0.1121 — its lowest price in a month — and locked in a monthly decline of more than 29%. The broader meme coin sector is hurting as well, with major players showing little to no growth. PEPE, for example, suffered over $4 million in liquidations, and even Shiba Inu’s impressive 8,500% burn rate spike hasn’t been enough to spark a sector-wide recovery.
These moves highlight just how sensitive meme coins are to bigger crypto market trends. With Bitcoin sliding to $58,000, the weakness across meme tokens is a reminder that these assets often act as early indicators of market vulnerability, especially when combined with whale accumulation patterns and changing trading volumes.
Searching for a bottom
With the market still on the decline, some analysts believe these alternative coins may be nearing a potential bottom. If that’s the case, meme coins could see sharper rebounds than many other altcoins once sentiment flips. For now, the trajectories of Dogecoin, PEPE, and SHIB are being watched closely. The scale of their current losses could help set the stage for a stronger recovery in the next market upswing.
Politics adding to the pressure
It’s not just market forces at play — politics is weighing heavily on crypto. Bitcoin recently fell to a two-month low as investors reacted to uncertainty around the upcoming U.S. presidential election and fresh concerns over Bitcoin supply from Mt. Gox, the now-defunct Tokyo-based exchange. BTC slid more than 2% to $57,843 — its weakest point since May 2 — and is now down over 6% on the week.
Volatility spiked further after a televised debate between Joe Biden and Donald Trump, which left markets jittery about possible election outcomes. The uncertainty spilled over into other top cryptos, with Ether slipping 1% to $3,213, more than 22% off its mid-March highs.
The Bigger picture
The surge in Dogecoin liquidations — set against the backdrop of a sliding Bitcoin and heightened political uncertainty — underscores the fragility of the meme coin market right now. DOGE, PEPE, and SHIB are absorbing heavy hits, and their performance is serving as a real-time gauge for risk appetite across the crypto space.
As political developments and macroeconomic factors continue to intertwine with digital asset prices, the crypto market is once again showing that it’s both full of opportunity and fraught with risk. For investors and enthusiasts alike, the coming weeks will be critical in determining whether this downturn deepens — or if the meme coin sector can mount an unexpected comeback.
