Krypto Chaos: Dogecoin Dives, $751M Wiped Out & the Dollar’s Sneaky Rise 🐶💸

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In a plot twist worthy of a Discworld novel, the cryptocurrency world decided to throw a little tantrum at the start of August, fueled by the dollar flexing its muscles and scaring the horses (and traders). Dogecoin (DOGE), that famously unpredictable pup, took a nosedive of nearly 10%, as if surprise snacks had suddenly turned into coal.

Over $751 million in traders’ bravely borrowed money – because who doesn’t enjoy gambling with Uncle Crypto’s credit card? – was forcibly sent back to where all the best magic tricks happen: the great beyond of liquidations. The lion’s share of this magic trick came from those overly bullish traders, who thought they could ride the wave and ended up with their portfolios looking like a pancake after a bad flip, with $706 million of their hopes evaporating like dew at dawn, thanks to CoinGlass’s fuzzy data and a pinch of market chaos.

Meanwhile, the DXY – the dollar’s sneaky little measuring stick – has decided to grow by over 3% in just four weeks, as if it’s auditioning for the next superhero flick. This rise hints at some serious financial tightening, pushing traders to retreat faster than a wizard facing a dragon, afraid of getting scorched by risky assets.

And let’s not forget the charming inflation numbers: the Fed’s favorite inflation indicator, the core PCE, waddled up to 2.8% year-on-year, tying its highest knot since February, making the market about as stable as a house of cards in a hurricane. The personal consumption expenditure price index also decided to increase by 2.6% in June, leaving traders scratching their heads and wondering if the economy’s just playing hide and seek.

Dogecoin Faces Market Mayhem

Earlier this week, the central bank, in an act of fiscal ‘meh,’ kept interest rates steady at 4.25%, dashing all hopes for September rate cuts like a druid smacking down a rebellious fairy. The market, ever so delicately balanced on a tightrope, watched DOGE tumble 9.17% in the last 24 hours, sneaking down to a humble $0.201, after a weekly slide of 11%. Looks like Dogecoin’s high-flying days, peaking at $0.248 on July 28, are now just pleasant memories buried under a mountain of market turmoil. If today ends like a bad soap opera, it might be the fifth day in a row Dogecoin’s mood has turned sour. Now, it stands below the 200-day SMA at $0.212, looking shy and uncertain.

The brave traders are now peering into their crystal balls, asking if DOGE can cling to the $0.20 level or if it’s destined for a visit to the support at the 50-day SMA at $0.194. Meanwhile, the bullish knights (hopefully with better luck than their past quests) are planning to rally DOGE back above the 200-day SMA at $0.212, rallying hope that the market’s rollercoaster might get a little less dizzy.

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2025-08-01 13:25