Bitcoin, Dogecoin, and Solana decline as jobs data and interest rate cut expectations spook investors

Cryptocurrency prices fell across the board early Tuesday, led by major assets such as Bitcoin, Dogecoin, and Solana, as new economic data appeared to send shivers through cryptocurrency and stock markets alike.

Bitcoin It dropped from a price of around $101,000 to the current price of $97,856, showing a decline of more than 4% on the day. Meanwhile, both Ethereum and Dogecoin were down around 7% on the day, with Solana close to a 6% decline.

Data is hotter than expected The impact on US jobs appears to have played a role, along with investors Pricing is no longer at lower interest rates From the Federal Reserve in the first half of 2025.

Cryptocurrency liquidations jumped after the markets corrected, with $385 million worth of long and short positions executed over the past 24 hours according to data from Queen Glass. $230 million worth came in the last four hours alone, with long positions making up the vast majority of liquidations worth $212 million.

The digital asset market has benefited greatly from lower interest rates, because cryptocurrencies tend to experience more volatile price movements.

In 2022, the US central bank aggressively raised interest rates in an attempt to curb inflation in the wake of the Covid-19 pandemic, making Bitcoin less attractive to investors.

But bitcoin — along with stocks — boomed last year due to the Federal Reserve’s moves to finally lower the cost of borrowing. US stocks also witnessed upward price movement.

In December, Bitcoin He hits New all-time high at $108,135. Trump’s presidential win and the approval of spot bitcoin ETFs in the US also played a big role in the rise in cryptocurrency prices.

Federal Reserve Chairman Jerome Powell warned in December that the central bank would not cut interest rates further, saying his team “will be more cautious as we consider further adjustments to our policy rate.”

Modified by Andrew Hayward

Editor’s Note: This story was updated after publication with additional details.