Dogecoin slid to $0.16 on Monday, November 3, 2025, marking a sharp downturn as the broader cryptocurrency market faced a steep sell-off. This decline comes amid growing investor unease over the U.S. Federal Reserve’s persistent stance on high interest rates, which continues to exert pressure on risk assets like crypto.
The meme-based cryptocurrency saw its price tumble by over 10% in a single day, briefly touching $0.16 before rebounding slightly to hover near $0.17. Despite the minor recovery, Dogecoin remains down approximately 9% over the past 24 hours and has shed around 18% in value over the last week. As of now, DOGE still holds its position among the top 10 cryptocurrencies by market capitalization, currently ranking 10th with a valuation of $25.5 billion.
What triggered this decline isn’t unique to Dogecoin. The entire crypto market has been reeling from a combination of macroeconomic pressures and cautious remarks from Federal Reserve officials. On November 3, Austan Goolsbee, President of the Federal Reserve Bank of Chicago, stated that he sees no urgency to lower interest rates again unless inflation shows a more promising trend toward the Fed’s 2% goal. His tone echoed the cautious approach signaled by Fed Chair Jerome Powell just days earlier, who asserted that a rate cut during the December meeting is “not a foregone conclusion.”
Goolsbee’s comments raised fresh concerns among investors, who had previously hoped for a more dovish Fed stance following rate cuts in September and October. Instead, the continued hawkish rhetoric has kept markets on edge, leading to a sharp pullback in high-risk assets, including cryptocurrencies.
The negative sentiment spread quickly. Bitcoin, the largest cryptocurrency by market cap, dropped to $105,336, while Ethereum fell to $3,564, erasing recent gains. Dogecoin, often seen as a bellwether for retail investor confidence, was hit particularly hard. Analysts now warn that if bearish momentum continues, Dogecoin could test support levels as low as $0.14 in the near term.
Trading volume for DOGE surged to over $3.3 billion in the last 24 hours—a 268% increase. This spike in volume suggests heightened selling activity, as investors rushed to exit positions amid mounting fears that tighter monetary policy could prolong crypto’s bear phase.
The current downturn in Dogecoin highlights a broader trend within the crypto industry. When interest rates are high, the opportunity cost of holding non-yielding assets like cryptocurrencies increases. This macroeconomic environment has historically led to capital outflows from speculative sectors into more stable investments such as bonds or money market instruments.
Adding to the pressure is the growing regulatory scrutiny and global uncertainty surrounding digital assets. While Dogecoin has benefited in recent months from rising retail interest and celebrity endorsements, its lack of intrinsic utility and high volatility make it especially vulnerable during market corrections driven by macroeconomic developments.
Despite the recent pullback, some market participants remain cautiously optimistic. They argue that Dogecoin’s sustained presence in the top 10 cryptocurrencies by market cap is a testament to its strong community and brand recognition. However, these factors alone may not be sufficient to weather prolonged bearish conditions if broader market sentiment fails to rebound.
From a technical standpoint, Dogecoin’s $0.14 level is now considered a key support zone. If the price breaches this threshold, further downside could be in store. Conversely, a recovery above $0.18 could signal a potential reversal, especially if market conditions stabilize.
Looking forward, much will depend on the Federal Reserve’s next moves. Should inflation data show meaningful improvement, the central bank may ease its tightening stance, which could reignite investor appetite for riskier assets like cryptocurrencies. Until then, traders and investors may continue to adopt a defensive posture.
Moreover, institutional interest in crypto remains a wildcard. While traditional investors are currently retreating in light of macroeconomic pressures, any shift in sentiment—such as favorable regulatory developments or renewed interest in blockchain innovation—could trigger a fresh wave of capital inflow.
It is also worth noting that Dogecoin has historically shown a capacity for rapid rebounds, often fueled by social media trends or endorsements from influencers. While such events are impossible to predict, they remain a unique aspect of DOGE’s market behavior.
In conclusion, Dogecoin’s fall to $0.16 reflects broader concerns about the macroeconomic landscape and investor anxiety over the Fed’s monetary policy. Although the coin retains a loyal following and significant market cap, its near-term outlook remains vulnerable to both institutional sentiment and central bank decisions. For now, caution is advised as the market searches for direction amid ongoing economic uncertainty.