The Fed's Hawkish Stance Triggers Market Turmoil, Dogecoin and Other Cryptocurrencies Face Severe Setbacks

Recently, the Fed's latest economic outlook swept through the financial markets like a storm, and the cryptocurrency sector was no exception. In this storm, Dogecoin, as one of the most notable cryptocurrencies, has particularly caught attention with its price movements.

Dogecoin Price Plummets, Trading Volume Soars

In the past 24 hours, Dogecoin's price has experienced a rollercoaster ride, plummeting by 12.4% to the crucial price point of $0.31. Meanwhile, its trading volume has surged dramatically, increasing by 67% to an astonishing level of $10.25 billion. This price fluctuation has caused Dogecoin to drop 35% from its 2024 peak, although its market capitalization remains high at $46.6 billion, making it the seventh-largest cryptocurrency in the world.

Fed's Hawkish Remarks Heighten Market Concerns

The source of this storm undoubtedly lies in the hawkish remarks made by Fed Chairman Powell on Wednesday. He predicted that inflation and unemployment rates in 2025 would be higher than market expectations, a piece of news that struck like lightning, instantly collapsing confidence in risk assets. Although the market had already priced in a 25 basis point rate cut by the Fed, Powell hinted that interest rates would not be lowered again anytime soon, further exacerbating market panic. Against this backdrop, cryptocurrencies, as high-risk assets, naturally became the primary victims.

Severe Outflow of Funds from Dogecoin, Huge Selling Pressure

From the data, it is clear that Dogecoin's price drop is not without cause. Accompanying the sharp decline in price, a significant amount of capital began to flow out of the sector, particularly on mainstream exchanges like Binance. Data shows that outflows from Binance exceeded $83 million, while trading volume surged by 74% to a high of $1.85 billion. Clearing data also indicates that net flows on most major exchanges are negative, suggesting that the market is experiencing widespread capital outflow.

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