Why Did the Prices of Dogecoin and Shiba Inu Rise Over 10%?

Dogecoin and Shiba Inu have witnessed strong bullish trends over the past few days. In just one day, both meme coins saw their values surge by more than 10%, putting them on the path to recovering the gains lost in the past few months. As these bullish trends excite investors, let’s take a closer look behind the scenes and see what has driven this price recovery. Donald Trump Will Go Easy On China The collapse of the cryptocurrency market began in January 2025, driven by U.S. President Donald Trump’s trade war with other countries, primarily China, which seemed to emerge unexpectedly. When the president imposed tariffs on China, the country retaliated with its own tariffs on the U.S., leading to a full-blown trade war. In addition, over 180 countries were affected by Trump’s tariffs, causing the market to fall into chaos. However, at the beginning of April, Trump announced that he would suspend tariffs on all other countries for 90 days, except for China. This is intended to create time for negotiations as other countries join the negotiating table. However, it seems that the president is also taking a positive view of China with the latest announcement. Earlier this week, Donald Trump said in an interview in the Oval Office that the tax rate on China is expected not to be high. To understand better, the United States is currently imposing a tax rate of 145% on China and both countries are expected to negotiate. According to the U.S. president, “the tax rate will not be that high. It will be significantly reduced, but it will not be zero.” When this news was announced, the market reacted very positively. First, the price of Bitcoin surged from $84,000 to $94,000, adding over $100 billion to the market capitalization in just a few hours. This bullish trend naturally impacted coins like Dogecoin and Shiba Inu, causing their prices to skyrocket in the same timeframe. Dogecoin and Shiba Inu prices react Following Trump’s announcement, Dogecoin and Shiba Inu have witnessed a significant increase in interest from cryptocurrency investors. For Dogecoin, its daily trading volume surged over 100% on Wednesday to exceed $2 billion. Its price then rose from below $0.17 to above $0.18 in just a few hours, according to data from CoinMarketCap. Similarly, the trading volume of Shiba Inu on Wednesday increased by 88% to reach $315 million, one of the highest daily trading volumes so far in April. Like Dogecoin, the price of Shiba Inu rose by more than 10% to increase from a daily low of $0.00001288 to $0.0000189. With two months remaining in Trump’s 90-day freeze period, the prices of cryptocurrencies are expected to continue to rise broadly. Naturally, Dogecoin and Shiba Inu are expected to lead the bullish trend of meme coins as the two largest cryptocurrencies in this category.