The cryptocurrency market experienced significant losses, with declines in Dogecoin and Bitcoin. This was linked to higher U.S. Treasury yields following the release of new economic data.
Major Cryptocurrencies Decline
Dogecoin dropped by 14%, while other cryptocurrencies like Solana, Cardano, BNB Chain, and Ethereum also saw declines of over 7%. Bitcoin itself fell by 5.5%. This downturn highlights a broader decline in the crypto market.
Impact of Economic Data on Markets
A report from the Institute for Supply Management showed stronger-than-expected performance in U.S. service providers and the highest price-paid measure since early 2023. Additionally, U.S. job openings exceeded forecasts, causing Treasury yields to rise and their prices to fall.
Outlook for the Crypto Market
Liquidations in the crypto markets reached $560 million, marking a significant level at the year’s start. Analysts like Vince Yang from zkLink remain optimistic about future market movements despite reduced hopes for interest rate cuts. Meanwhile, QCP Capital warns of potential instability as January approaches due to the U.S. debt ceiling.
Despite current challenges, the cryptocurrency market may recover, especially with more crypto-friendly policies in the U.S. on the horizon.
