Dogecoin loses all of its 2025 gains as Bitcoin and Solana experience significant declines

The cryptocurrency market faced a significant downturn in early January 2025, with several leading coins experiencing sharp declines. Dogecoin, which started the year with a rise, saw a dramatic drop in just two days. The popular meme coin rose from $0.314 to almost $0.40 on January 7th, but then plummeted back to $0.314 on January 9th, losing all the early gains. On January 9, Dogecoin stood at $0.318, slightly above where it began the year, but still far from its peak earlier in the week.

Bitcoin, the largest cryptocurrency, was also caught in the market’s downward spiral. It fell from over $100,000 on January 7 to a low of $91,250 on January 9, reversing slightly to $91,975 later in the day. Despite the recovery, Bitcoin is down 3.5% over the past week. Analysts suggest the decline is linked to mixed economic data and investor concerns over the possibility of fewer rate cuts in 2025. This sentiment worsened with recent comments from the Federal Reserve, which raised concerns about managing inflation under the incoming Trump administration.

Solana saw an even steeper decline, falling 11% this week to $184, marking its lowest point in 2025 so far. Ethereum also recorded a significant decline, with its value falling by nearly 8% over the same period. The broader market decline has been further exacerbated by significant outflows from cryptocurrency exchange-traded funds (ETFs). According to CoinMarketCap dataBitcoin ETFs saw nearly $569 million withdrawn on January 8, while Ethereum ETFs saw outflows of $159 million.

These losses come after a period of optimism in the crypto market, following Bitcoin’s recent record high. However, investor confidence has been shaken as economic uncertainty grows. The withdrawal of funds from both Bitcoin and Ethereum ETFs reflects a lack of faith in the short-term stability of these assets, especially as economic conditions remain volatile.

All in all, the cryptocurrency market faces a challenging start to 2025, with investors showing signs of jitters about both the broader economy and volatility in the crypto space. Dogecoin, Bitcoin and Solana’s recent performance exemplifies the unpredictable nature of digital currencies as many investors remain on edge about what lies ahead.