Market Reactions: Dogecoin and Major Cryptocurrencies Face Significant Losses

Market Reactions: Dogecoin and Major Cryptocurrencies Suffer Losses

Overview

The cryptocurrency market experienced a significant decline, with Dogecoin (DOGE) leading the losses. The market downturn follows the drop in Bitcoin's (BTC) value to approximately $96,000, attributed to economic data that has impacted U.S. Treasury yields.

Declines in Major Cryptocurrencies

DOGE witnessed a 10% loss, while other major currencies also declined:

• Solana (SOL): 7%
• Cardano (ADA): 7%
• Binance Coin (BNB): 7%
• Ethereum (ETH): 7%
• Bitcoin: 5.5%
• CoinDesk 20 (CD20) index: 7.1%

Major Liquidations

The futures markets saw liquidations totaling $560 million, indicating a high level of forced position closures by exchanges.

Impact of U.S. Economic Data

The U.S. ISM Services Index exceeded expectations, causing a rise in price payments to its highest level since 2023. Additionally, job openings in the U.S. surpassed forecasts. These developments have led to a decline in Treasury bonds and an increase in the 10-year Treasury yield to its highest level since May.

Expert Opinions

• Vince Yang, CEO of zkLink: "The markets took a hit yesterday due to stronger-than-expected U.S. job data, reducing expectations for interest rate cuts. This is not unusual for crypto."
• QCP Capital: "We anticipate a volatile January for crypto markets, and the reinstatement of the U.S. debt ceiling could trigger market volatility."

Market Outlook

While Tuesday's decline is seen as temporary, investors and analysts are closely monitoring the impact of economic data on crypto assets. The cryptocurrency market holds the potential for recovery, and observers remain cautious about the potential long-term implications.