Dogecoin’S 10% Plunge Leads Cryptocurrencies Lower

%Solana (CRYPTO: $SOL), %Cardano (CRYPTO: $ADA), BNB Chain (BNB), and %Ethereum (CRYPTO: $ETH) have each declined 7% or more in the past 24 hours.

%Bitcoin (CRYPTO: $BTC), the largest cryptocurrency by market capitalization, has seen its price drop 5.5% to trade at $95,350 U.S.

The losses seen in cryptocurrencies are tracking those of U.S. stocks, which have struggled since the trading year began on Jan. 2.

Data showing a weakening U.S. economy and worries about resurgent inflation have pushed crypto and stock prices lower, say analysts.

The latest data showed that U.S. job openings rose more than expected, a sign of a weakening American economy.

The economic news has pushed 10-year Treasury yields to their highest level since May 2024, pressuring stocks and cryptocurrencies.

Adding to the pressure on crypto has been a spike in the number of liquidations taking place.

Liquidations occur when an exchange forcefully closes a trader's leveraged position due to the inability to meet margin requirements.

When many traders are forced to sell positions at the same time due to liquidations, it creates a cycle where falling prices lead to more liquidations, which in turn causes prices to drop further.

The current decline in crypto prices comes after a big run-up in recent months after the November re-election of Donald Trump as U.S. president. Trump is pro-crypto.

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