Dogecoin Falls 8% as Treasury Yields Hit Highest Level Since 2007

Dogecoin fell nearly 8% to just above $0.09 as rising U.S. Treasury yields and stronger economic data triggered a broad sell-off across crypto markets.

DOGE was among the biggest losers on Thursday, while Bitcoin slipped below $84,000 after briefly climbing toward $87,300. Zcash, XRP and Hyperliquid also fell between 5% and 6%, while Ether, Solana and BNB dropped 2% to 3%.

The broader risk-off move came as the 10-year U.S. Treasury yield climbed to 5.11%, its highest level since 2007.

Why DOGE is falling

The main pressure came from a sharp rise in borrowing costs.

The 10-year Treasury yield jumped 15 basis points in a single day after stronger U.S. business data and a weak Treasury bond auction pushed yields higher.

Higher Treasury yields can make riskier assets less attractive because investors can earn higher returns from government debt. They can also make borrowing more expensive for traders using leverage.

That combination weighed on crypto, with DOGE taking one of the biggest hits among major tokens.

Dogecoin fell around 7% to slightly above $0.09, while Bitcoin lost more than 2% over 24 hours.

Strong U.S. data adds to DOGE pressure

The sell-off accelerated after S&P Global's latest U.S. business survey showed activity expanding at its fastest pace in more than five years.

The flash composite PMI reached 58.4, its highest reading since July 2021.

The stronger-than-expected data added to concerns that the U.S. economy remains strong enough to keep inflation pressures elevated. That can make markets more cautious about expectations for easier monetary policy.

Bitcoin's sharpest decline on Wednesday came shortly after the business survey was released, and DOGE followed the broader crypto market lower.

Oil prices add another inflation risk

Oil prices also moved higher, adding another source of inflation pressure.

Brent crude jumped more than 4% to nearly $104 per barrel, ending a six-session decline.

Rising energy prices can push inflation expectations higher because fuel and transportation costs affect businesses and consumers.

For DOGE and other high-beta crypto assets, that creates another headwind if higher inflation keeps bond yields elevated.

Weak Treasury auction adds to the pressure

The U.S. Treasury's $70 billion five-year note auction also pointed to stronger demand for higher yields.

The notes were sold at a 5.033% yield, the highest auction yield since 2006. The result was around three basis points above where the notes traded immediately before the auction.

That means investors demanded additional yield to buy the debt.

The combination of stronger economic activity, higher oil prices and the weak auction pushed Treasury yields higher and added pressure to risk assets.

DOGE faces a tougher market backdrop

Dogecoin's latest decline comes after a period in which crypto markets had benefited from strong institutional flows.

Spot Bitcoin ETFs recently recorded nearly $1 billion in single-day inflows, showing that demand for crypto exposure had remained strong even as markets faced macro uncertainty.

But DOGE does not receive the same direct institutional flow support as Bitcoin ETFs. That can leave the meme coin more exposed when traders reduce risk across the broader crypto market.

The latest move therefore puts DOGE's ability to hold above the $0.09 area in focus.

Bitcoin options expiry adds another test

Bitcoin's weakness could also keep pressure on the broader crypto market.

BTC is now below $85,000, a level that matters ahead of Friday's roughly $14 billion options expiry on Deribit. Ledn co-founder Mauricio Di Bartolomeo previously pointed to a large block of call options around the $85,000 strike.

If Bitcoin remains under pressure around the expiry, DOGE and other higher-beta tokens could remain sensitive to broader market volatility.

Related: Bitcoin Faces $16B Options Expiry on Friday as Rally Hits Key Tests

For Dogecoin, the immediate focus is whether the token can stabilize above $0.09 as Treasury yields remain elevated. A sustained reversal in yields could ease pressure on risk assets, while another move higher could keep DOGE under pressure.