Dogecoin falls to 11th in crypto rankings as $361 million in positions liquidated

Red dominates markets as September begins

CoinGlass reported that over the last 24 hours, crypto markets witnessed $361 million in liquidated positions. The trend highlights the heightened volatility that often marks the start of September, a month that has historically been unfavorable for risk-on assets like cryptocurrencies.

September’s reputation as a tough month for markets earned it the nickname “Rektember,” with Bitcoin seeing its average monthly returns fall by around 3% since 2013 and only five positive September closes to date.

Traditional markets have not escaped this pattern. Since 1975, September stands out as the only month that has delivered a negative average return for the S&P 500. As the month kicks off, traders are monitoring the landscape for any potential shift in sentiment or a continuation of the bearish momentum.

Dogecoin loses top 10 rank

At the time of reporting, Dogecoin was down 1.41% over 24 hours, trading at $0.081. On a weekly basis, the meme-inspired cryptocurrency declined 4.90%. Dogecoin’s latest slide followed a rapid profit-taking phase that began after its price briefly touched $0.10 on August 22, falling to a recent low of $0.08.

The steep correction has pushed Dogecoin out of the top 10 cryptocurrencies by market capitalization, with its valuation now at $12.74 billion. It is currently ranked 11th, ceding its former position in the upper echelon of digital assets by market cap.

Dogecoin is an open-source, peer-to-peer cryptocurrency launched in 2013, initially inspired by the popular Doge meme. It gained popularity for its community-driven approach and lighthearted style, but market fluctuations have sharply influenced its standing in recent years.

Mini dictionary: S&P 500, a stock market index that tracks the performance of 500 large companies listed on US stock exchanges and is considered one of the best gauges of the overall US equity market.

Macro factors and Fed expectations fuel pressure

Investors are also grappling with macroeconomic headwinds. Following Federal Reserve Chair Kevin Warsh’s hawkish speech at the Jackson Hole summit, in which he highlighted persistent inflation, markets have responded with increased caution. A 25-basis-point rate hike is now seen as a 66% probability at the Fed’s September 16 meeting, with another possible raise before the year closes.

Uncertainty around US monetary policy continues to weigh on both digital assets and traditional markets, amplifying volatility and leading to a cautious atmosphere among market participants.