Why Are The Bitcoin, Ethereum, And Dogecoin Prices Down Again?

Overview

The cryptocurrency market is currently facing significant declines, causing concern among investors as Bitcoin, Ethereum, and Dogecoin experience sharp price drops. Following a brief recovery earlier this week, these digital assets are now under renewed downward pressure, highlighting the market’s sensitivity to shifts in investor sentiment.

Recent Developments in Cryptocurrency Prices

The decline in cryptocurrency prices is largely attributed to growing skepticism regarding the Federal Reserve’s (FED) approach to interest rates. Recent comments from FED officials, including the President of the Federal Reserve Bank of Minneapolis, have fueled uncertainty about the possibility of further easing of monetary policy in the upcoming December meeting. This uncertainty has led investors to reassess their positions, contributing to the downward trend in prices for Bitcoin, Ethereum, and Dogecoin.

The prevailing doubts surrounding monetary easing have had a pronounced impact on the cryptocurrency market. As these digital assets reacted sharply to negative sentiment, their prices plummeted, exacerbating a broader correction that has persisted for several months. The situation has been further complicated by large-scale sell-offs from major holders and ongoing uncertainty regarding developments related to a previous U.S. government shutdown.

Price Declines

Market dynamics have also played a significant role in the recent losses. Data indicates that Bitcoin has fallen below a notable price threshold for the first time since a specific date, experiencing a decline of more than 5% over the week and an alarming drop of over 6% in a single day. Long-term holders of Bitcoin are reportedly selling at unprecedented levels, contributing to the downtrend, while institutional demand appears to be waning. Notably, Spot Bitcoin ETF activity has seen substantial net outflows, marking significant shifts in market behavior.

Ethereum has been similarly affected, with a notable loss exceeding 10% within a 24-hour period and over 5% for the week. Its price has been on a steady decline for several weeks, with no clear signs of recovery. Meanwhile, Dogecoin, although slightly less impacted by the overall bearish trend, has also seen a decline, with its price dropping approximately 2.3% during the week and an additional 8% in a single day.

Impact on the crypto market

• The cryptocurrency market is experiencing heightened volatility with significant declines across major assets.
• Investor sentiment has turned negative, influenced by macroeconomic uncertainties and internal market dynamics.
• Long-term holders of Bitcoin are selling at record levels, further exacerbating price declines.
• Institutional demand for cryptocurrencies appears to be weakening, contributing to overall market stress.
• Spot Bitcoin ETF activity has recorded substantial net outflows, indicating shifts in investment strategies.
• All three assets—Bitcoin, Ethereum, and Dogecoin—are facing double-digit monthly losses, signaling a period of extreme stress in the market.

Updated: 11/14/2025, 4:31:57 PM