Dogecoin 
$0.333755 (DOGE) experienced the largest decline among major cryptocurrencies as Bitcoin (BTC) 
$94,362 fell to approximately $96,000. This drop is attributed to new economic data that triggered an increase in U.S. Treasury yields.
Overall Decline in Cryptocurrency Markets
DOGE lost 10% of its value, while Solana 
$192‘s SOL, Cardano 
$0.930991‘s ADA, BNB Chain’s BNB, and Ether (ETH) each dropped by at least 7%. Bitcoin declined by 5.5%, and the broader CoinDesk 20 (CD20) index decreased by 7.1%.
Major Liquidations in Futures Markets
The cryptocurrency futures markets saw liquidations totaling $560 million, indicating a relatively high level compared to the beginning of the year.
Impact of U.S. Economic Data on Markets
The ISM Services Index report from the U.S. exceeded expectations, with the price payments metric rising to its highest level since early 2023. Additionally, job openings in the U.S. surpassed forecasts.
These developments led to a decline in Treasury bonds across various maturities, with the 10-year Treasury yield reaching its highest level since May. Liquidations signify that exchanges forcibly closed leveraged positions held by investors.
Expert Opinions
Vince Yang, CEO of zkLink, stated in a Telegram message, “The markets took a hit yesterday; Bitcoin and Ethereum 
$3,324 dropped sharply. Stronger-than-expected U.S. job data reduced expectations for more interest rate cuts this year. This is not unusual for crypto.”
QCP Capital, based in Singapore, commented, “We expect a tumultuous January for the crypto markets. The reinstatement of the U.S. debt ceiling may trigger market volatility.”
Market observers believe that Tuesday’s decline is temporary in the long run and that the cryptocurrency markets have the potential for recovery. Investors are closely monitoring the effects of economic data on crypto assets.
