Dogecoin’s Value Drops 4% in One Day as Cryptocurrency Market Takes $200 Billion Hit
Dogecoin, a well-known cryptocurrency, experienced a 4% decrease in value within just 24 hours. This decline was part of a broader selloff in the cryptocurrency market, mainly driven by extreme fear among investors. At the time of reporting, Dogecoin’s price had dropped to $0.1045, with trading volume surging by 61% to reach $2.42 billion on Sunday.
The downward trend in Dogecoin’s price extended its weekly losses to over 14%, as other alternative coins faced significant selling pressure during this period. The correlation between Dogecoin and Bitcoin is quite high, standing at 96%. As such, Dogecoin becomes susceptible to market-wide fluctuations, especially during times of extreme fear, such as the current situation.
The overall cryptocurrency market lost a staggering $200 billion on February 1, 2026, largely due to Bitcoin’s drastic 12% decline to $75k, marking its lowest value since April 2025. Other major cryptocurrencies like Ethereum and XRP also saw declines of 13% and 10%, respectively. Dogecoin mirrored these losses, showcasing a systemic risk aversion sentiment among investors.
The Fear/Greed Index, a key indicator of market sentiment, registered “Extreme Fear,” further confirming the panic-driven selling behavior prevalent in the cryptocurrency market. As a result of this selloff, over $2.5 billion worth of crypto positions were liquidated, with Dogecoin long positions accounting for losses exceeding $13 million in just a few hours.
Liquidations in the crypto market often lead to a cascade effect, where falling prices trigger more leveraged positions to be liquidated, thus perpetuating the selling pressure. Dogecoin’s plunge below the critical support level of $0.11 was attributed to broader weakness in the overall crypto market, combined with liquidations and unfavorable technical indicators. With no significant positive catalysts specific to Dogecoin, the cryptocurrency was left vulnerable to the prevailing market forces.
Additionally, high trading volume in Dogecoin futures, reaching $200 million on BitMEX, amplified the selling pressure on the cryptocurrency. The lack of any positive news or developments related to Dogecoin compounded its downward trajectory during this period. The current market conditions have highlighted the interconnected nature of cryptocurrencies, where movements in one asset can have ripple effects across the entire market.
