Dogecoin and ether lead 4.5% crypto pullback as tech earnings weigh

Dogecoin dropped 4.5% and ether 2.5%, leading a broad crypto retreat as investors digested disappointing tech earnings and rising rate-hike odds.

The pullback came as Brent crude topped $100 a barrel for the first time in two months after Houthi attacks on Saudi tankers, pushing the 10-year Treasury yield to 4.71%, its highest since January 2025, according to Investing.com data.

Bitcoin fell to around $64,700, down roughly 2% from overnight highs near $66,300, CoinGecko data show. The broader market decline saw Cardano and Solana each lose more than 3%. Over $200 million in crypto liquidations were recorded in the past 24 hours, with $160 million in long positions wiped out, per Coinglass.

The selloff follows a brutal session for US equities, where the Nasdaq Composite sank 2.2% and the S&P 500 fell 1.2% after Tesla missed earnings estimates and Alphabet raised its AI capex forecast to as much as $205 billion. Traders are now pricing a 36% chance of a Fed rate hike at next week's meeting, up from 12% a week ago, according to CME FedWatch.

The macro headwinds are compounding pressure on altcoins that had rallied earlier this month. Dogecoin had gained more than 8% in the prior week as Bitcoin ETF inflows topped $1 billion, but the reversal in risk appetite has erased those gains.

Ether's decline to around $1,888 puts it below the $1,900 level for the first time since July 17. The Ethereum/Bitcoin ratio slipped below 0.029, showing relative weakness in the second-largest cryptocurrency.

For altcoins, the key risk is a continued rise in real yields. If the 10-year Treasury yield pushes above 4.75%, speculative assets typically face additional selling pressure as the opportunity cost of holding non-yielding tokens increases.

This article is for informational purposes only and does not constitute investment advice.