Dogecoin (CRYPTO: DOGE) is trading lower on Wednesday evening as Bitcoin (CRYPTO: BTC) slides to its lowest level in 15 months, dragging down the broader crypto market.
At the time of publication, Bitcoin was near $73,000, down roughly 5% over 24 hours, while Dogecoin hovered around 10 cents, also about 5% lower, according to Benzinga Pro data.
- Here’s what traders and investors should know about Wednesday’s move in crypto markets.
Macro Jitters Push Bitcoin Lower — And Drag Crypto With It
The market also digested a delayed January jobs report amid a government shutdown, alongside elevated geopolitical risks with U.S.-Iran talks and Ukraine preparing for renewed peace negotiations.
Options markets have reflected the stress, with demand for near-term downside protection signaling traders expect any bounce to be short-lived, pressure that has spilled into altcoins and crypto-linked stocks.
Why Dogecoin Falls When Bitcoin Falls
For retail investors, the simplest way to think about it is “Bitcoin is the tide.” Bitcoin is the market’s benchmark and biggest source of liquidity, so it sets the risk mood for the entire asset class.
When BTC drops, many traders de-risk quickly, trimming positions across the board, including smaller, more volatile assets like DOGE.
Mechanically, a lot of DOGE trading is linked to Bitcoin through arbitrage and “pair” pricing. If BTC falls on one venue, algorithms sell DOGE (or buy BTC) elsewhere to keep relative prices aligned. Market makers also widen spreads and pull orders during sharp BTC moves. With less depth, even small sell orders can push DOGE down.
A BTC decline can also trigger liquidations in leveraged positions. When forced selling hits, altcoins typically absorb the bigger percentage move because their markets are thinner and sentiment is more speculative.
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