Cryptocurrency prices have reversed lower led by a 10% decline in Dogecoin (DOGE).
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Solana (SOL), Cardano (ADA), and Ethereum (ETH) have each declined 7% or more in the past 24 hours. Bitcoin (BTC), which is the biggest cryptocurrency by market capitalization, has seen its price drop 6% to trade at $94,750.
The sudden losses seen in crypto are tracking those of U.S. stocks, which have been mixed since the trading year began on January 2. Data showing a weakening U.S. economy and worries about resurgent inflation have pushed crypto and stock prices lower, say analysts.
Treasury Yields Rise
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 liquidations. Typically, 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.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on cryptocurrencies. So instead we’ll look at the three-month performance of Bitcoin. As one can see in the chart below, the price of BTC has risen 60% in the last 12 weeks.
