Bitcoin and Dogecoin- Bitcoin Falls 5.5% and Dogecoin Plunges 10% as Treasury Yields Spike
Bitcoin and Dogecoin– Dogecoin (DOGE) experienced a sharp 10% drop, leading losses among major cryptocurrencies, as Bitcoin (BTC) fell to nearly $96,000. This sell-off came after fresh economic data triggered a surge in U.S. Treasury yields, negatively impacting risk assets like cryptocurrencies.
Impact of Economic Data on Crypto Markets
The decline in Bitcoin and other major altcoins followed stronger-than-expected economic data from the U.S. The latest Institute for Supply Management (ISM) report revealed that U.S. service providers experienced growth beyond expectations. Additionally, U.S. job openings rose more than forecasted, leading to a rise in Treasury yields. The 10-year Treasury yield hit its highest level since May, increasing pressure on risk assets like Bitcoin, Dogecoin, and others.
Broad Crypto Market Declines
Solana (SOL), Cardano (ADA), Binance Coin (BNB), and Ether (ETH) all saw losses of at least 7%. Bitcoin itself dropped by 5.5%, while the CoinDesk 20 (CD20) index, which tracks the largest cryptocurrencies by market cap, fell by 7.1%. This broad-based decline also mirrored trends in U.S. equities, which were affected by the same economic data. According to reports, crypto-tracked futures betting on higher prices faced liquidations totaling $560 million, reflecting the broader market pullback.
Liquidations Fueling the Downtrend
Market watchers explained that the sell-off was exacerbated by forced liquidations. As traders failed to meet margin requirements, exchanges closed their leveraged positions, triggering a cascade effect. This cycle of falling prices and liquidations led to a deeper drop in cryptocurrency prices. However, experts like Vince Yang, CEO of zkLink, believe this correction is temporary: “Markets took a hit yesterday… but history shows these dips often pave the way for bigger bullish movements.”
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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