Ex-President Donald Trump’s tariff announcement triggered a significant downturn in Dogecoin’s value, leading to a 50% crash in October 2025. This market shock, coupled with the broader crypto downturn driven by excessive leverage, highlighted the asset’s susceptibility to macroeconomic fluctuations and speculative behaviors. While institutional investors helped stabilize prices, concerns regarding excessive optimism and leverage emerged. Dogecoin co-founder Billy Markus emphasized: ‘Excessive optimism and leverage contributed to this crash. Uptober hype blinded retail traders to actual risk. Smart money waits for real support, not memes.’ This event resulted in widespread liquidations of leveraged positions across the crypto market, impacting other major coins such as Bitcoin (BTC) and Ethereum (ETH), leading to a significant price drop from $0.22 to $0.11 before stabilizing around $0.19-$0.20. Experts point to historical trends, suggesting that similar events often lead to market rebounds after initial crashes. Institutional ETF activity and whale accumulation may indicate potential stability for Dogecoin in the future. However, volatility is expected as the market adjusts to macroeconomic changes, potentially paving the way for long-term stability through institutional investment strategies.