Dogecoin climbs 11% as Bitcoin and XRP rebound after plunge
Cryptocurrencies are once again displaying their characteristic volatility, with Dogecoin, XRP and Bitcoin rebounding strongly after Monday’s drop. These digital assets have not only regained lost ground but are also experiencing significant gains.
Monday’s slowdown turns into Tuesday’s rise
Market turmoil on Monday, fueled by fears of prolonged high interest rates into 2025, was short-lived. On Tuesday, Dogecoin, Bitcoin and XRP had seen impressive recoveries:
- Dogecoin (DOGE):
Dogecoin surged almost 11% on Tuesday, reaching a price of $0.357. This is a nearly seven-day high for the popular coin, effectively recovering from Monday’s losses. Despite the rally, Dogecoin remains down 12% over the past 30 days, following December’s turbulent gains. - XRP:
XRP also made an impressive comeback, rising nearly 9% to $2.66, the highest price ever in 2025. That’s just below its seven-year high of $2.82 recorded in December. The rally could be linked to renewed optimism over potential XRP exchange-traded funds (ETFs) and Ripple’s ties to the new administration, as Ripple’s CEO and legal chief recently met with President-elect Donald Trump . - Bitcoin (BTC):
Bitcoin fully recovered from Monday’s plunge, climbing nearly 5% to $96,475. Its resilience underlines its position as a barometer of the broader cryptocurrency market. - Other assets:
Ethereum and Solana also benefited from Tuesday’s bullish momentum, with gains of 6% and 5%, respectively.
Factors driving the recovery
- Liquidation of short films:
Data from CoinGlass shows that more than $300 million in futures positions were liquidated in the past 24 hours. Unlike Monday, most of these liquidations were short positions, accounting for $221 million. - Speculative optimism:
Growing speculation over regulatory approvals, such as an XRP ETF, is fueling positive investor sentiment. - Institutional influence:
Ripple’s interactions with political and financial leaders, as well as its ongoing legal battles, have brought additional attention to XRP. - Market correction:
After Monday’s overreaction to interest rate fears, Tuesday’s rebound could represent a market correction as traders reassess the long-term potential of these assets.
Key takeaways
- Dogecoin, XRP and Bitcoin rebounded strongly after a sharp decline on Monday.
- XRP has reached its highest price in 2025, while Dogecoin is nearing a seven-day high.
- The liquidation of short positions contributed to the market recovery.
- Positive developments such as potential ETF approvals and institutional engagement provide optimism.
As always, cryptocurrency investors should proceed with caution, given the market’s inherent volatility and sensitivity to macroeconomic and regulatory news.