- The price of Dogecoin hit $0.14 on Tuesday, showing a 46% decline since Trump announced tariffs on Canada and Mexico on March 3.
- Since March 3, the value of Dogecoin has closely followed Tesla’s decline of 20%, as the automaker saw a $200 billion drop in its market capitalization.
- Trump revealed his intention to purchase a new Tesla, rallying support for DOGE leader Elon Musk.
On Tuesday, Dogecoin’s price reached $0.14, reflecting a 46% drop over the past week and a half. Analysts have indicated that recent news involving the U.S. President and Elon Musk could bring some stability to DOGE prices in the near future.
Dogecoin (DOGE) Hits Five-Month Low Amid Growing Inflation Concerns
Since the onset of the current crypto market downturn in early March, Dogecoin (DOGE) has become the most adversely affected asset. Following the US Nonfarm Payrolls (NFP) report raising inflation fears, investors have been shifting their assets away from riskier investments.
This bearish sentiment has particularly impacted memecoins, which are often seen declining during such macroeconomic downturns.
The speculative nature of memecoins and their responsiveness to news mean that traders frequently sell off these tokens quickly whenever market conditions turn sour.
Dogecoin Price Analysis, March 11, 2025 | Source: TradingView
Supporting this narrative, Dogecoin’s price decline has coincided with the wider market slump following Trump’s confirmation of tariffs on Canada and Mexico on March 3.
While Bitcoin’s value has dropped by only 15%, falling from $95,000 to $81,000 as of Tuesday, Dogecoin has seen a loss more than double that amount.
The chart illustrates that DOGE traded as low as $0.14 on Tuesday, indicating a 46.7% decrease in just eight days since March 3.
Main Factors Influencing DOGE Price This Week
With significant sell-offs and rising trading volumes, Dogecoin traders have been vigilant for external bearish triggers over the past week.
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Tariff Policies Causing Tesla Sell-Off
The recent decline in Tesla’s stock price, triggered by Trump’s tariff announcements, has had a broader impact on assets associated with Elon Musk.
Investors have been withdrawing funds, trying to cut expenses in anticipation of inflation, which contributed to job losses reflected in the recent NFP report.
However, assets tied to Musk are facing particularly harsh sell-offs due to the negative sentiment surrounding these policies.
Tesla (TSLA) Stock Price Action, March 2025 | NASDAQ
Tesla has recently cautioned investors that tariffs are likely to hinder sales in the upcoming quarter as Canada prepares to retaliate.
This factor, combined with ongoing economic uncertainty, has led to a 20% drop in Tesla’s shares, from $284 at the time of the tariff announcement on March 3 to $227 on Tuesday.
In contrast, the S&P 500 has only experienced an 8% decline in the past month.
This indicates that both DOGE and Tesla are undergoing accelerated downtrends in their respective markets, highlighting the impact of government policies.
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Trump’s Promise to Buy Tesla Could Boost DOGE Prices
On Tuesday, Trump used his Truth Social platform to promote Tesla sales, urging “Republicans, Conservatives, and all great Americans” to stand behind Musk, who is actively reducing federal government jobs.
On Monday, U.S. markets dipped due to investor concerns over the economic impact of Trump’s tariffs, coming after the President suggested that the U.S. economy was in a “period of transition” and hinted at a potential recession.
Investors are worried that Trump’s tariffs could accelerate price increases, further impacting economic growth as businesses pass the import costs onto consumers.
Trump issues statement supporting Elon Musk’s Tesla amid tariff crisis | Source: TruthSocial, March 11
The tech sector has seen significant declines, with Tesla shares plummeting by 20%. Other notable companies such as Nvidia, Meta (formerly Facebook), Amazon, and Alphabet (Google’s parent company) have also faced major losses.
Trump expressed on Tuesday that Musk is doing an “incredible job,” but warned that “radical left lunatics” are “trying to illegally and conspiratorially boycott Tesla” to harm Elon.
“I will purchase a brand new Tesla tomorrow morning to demonstrate my confidence and support for Elon Musk, a truly great American.” – Donald Trump
Following Trump’s encouraging remarks, Tesla shares experienced a recovery of 3.6% when the U.S. markets opened on Tuesday, with other tech stocks also regaining some of their previous losses.
Given the observed strong price correlation between Tesla and Dogecoin since March 3, it remains to be seen whether this could lead to a significant recovery for DOGE towards $0.20 in the upcoming trading sessions.