Share this article
Dogecoin Slumps 10% Amid Bitcoin's Slide to $96K, $560M Long Positions Liquidated
“History shows these dips often pave the way for bigger bullish movements, especially with where we are in the market cycle now,” one market watcher said, as some foresee a shaky period in January.
Jan 8, 2025, 7:11 a.m.
What to know:
- Dogecoin led crypto majors losses in the past 24 hours as bitcoin slid from above $102,000 to nearly $96,000.
- Crypto-tracked futures betting on higher prices took on $560 million in liquidations, data shows, setting a relatively high level at the start of the year.
- Singapore-based QCP Capital sticks to their view of a shaky period for crypto markets in January.
led losses among crypto majors as bitcoin slid to nearly $96,000, a dump attributed to fresh economic data that sent U.S. treasury yields soaring.
DOGE plunged 10%, with Solana’s SOL, Cardano’s ADA, BNB Chain’s BNB and ether down at least 7%. Bitcoin fell 5.5%, while the broad-based CoinDesk 20 (CD20), a liquid index tracking the largest tokens by market cap, fell 7.1%.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Crypto-tracked futures betting on higher prices saw liquidation of $560 million, data shows, setting a relatively high level at the start of the year.
Losses in crypto tracked those in U.S. stocks. The latest Institute for Supply Management (ISM) report on U.S. service providers was stronger than anticipated, with the prices-paid measure reaching its highest point since early 2023.
Concurrently, U.S. job openings rose more than forecasted. These developments led to a decline in Treasury securities across various maturities, pushing the 10-year Treasury yield to its highest since May.
A liquidation occurs when an exchange forcefully closes a trader's leveraged position due to the inability to meet the margin requirements. When many traders are forced to sell at the same time due to long liquidations, it creates a cycle where falling prices lead to more liquidations, which in turn causes prices to drop more.
As such, market watchers consider Tuesday’s drop to be a blip in the long term.
“Markets took a hit yesterday, with Bitcoin and Ethereum dropping hard, mostly because stronger-than-expected U.S. job data dimmed hopes for more rate cuts this year,” shared Vince Yang, CEO and cofounder of zkLink in a Telegram message. “It’s the kind of broader sentiment shift we’ve seen before, nothing unusual for crypto.”
“That said, we are still optimistic. History shows these dips often pave the way for bigger bullish movements, especially with where we are in the market cycle now, and with a more crypto-friendly administration in the US coming in, there’s every reason to believe we’re heading for some exciting times ahead,” Yang added.
Singapore-based QCP Capital, however, sticks to their view of a shaky period for crypto markets in January.
“It won’t be smooth sailing into January, as structural risks loom,” QCP said in a Telegram broadcast on Wednesday. “The U.S. Treasury debt ceiling reinstatement is projected to be reinstated mid-month, requiring the Treasury to adopt "extraordinary measures" to fund government expenditures.”
“This could trigger market volatility as discussions around the issue intensify,” QCP added.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Bitcoin dips, but quickly recovers as U.S. captures Venezuela's Maduro
The U.S. overnight launched a military strike against Venezuela, capturing President Nicolas Maduro and his wife and extracting them from the country.
What to know:
- The U.S. captured Venezuelan President Nicolas Maduro and his wife after a brief military operation Saturday morning, according to President Trump.
- Crypto prices suffered a brief, modest drop on the first reports of the military action, but have since recovered.
Top Stories
