Dogecoin Plummets 9% as Crypto Markets Flash Red

The crypto industry's largest "meme coin" by market capitalization, Dogecoin, has plummeted over 9% overnight.

DOGE is now trading at around $0.088 following the latest drop. Bears have been in control of the token for the past week, too; in the past seven days, Dogecoin has fallen almost 16%, per CoinGecko.

After Ethereum and Bitcoin, DOGE generated the third-most liquidations in the past 24 hours.

Coinglass reports a total of $6.34 million in DOGE liquidations, the majority of which occurred on crypto exchange Binance. Roughly half of those liquidations ($3.79 million) were liquidated in the last 12 hours.

Losses accumulated have yet to eat into the hefty gains earned at the end of November, following continued speculation that Elon Musk would incorporate the cryptocurrency into Twitter.

In a recent presentation, the new Twitter CEO shared user metrics for the site as well as several new updates, including encrypted messaging and long-form tweets. The final box next to "Payments" is blank, churning the rumor mill that Musk had big plans for introducing a cryptocurrency.

There's been little indication, however, that he'll actually move forward with such plans.

Beyond Dogecoin: Crypto markets flash red

Though Dogecoin is the biggest loser among the top 10 largest cryptocurrencies, it isn't the only digital asset to drop points.

In the past 24 hours, Bitcoin and Ethereum have both shed 1.4% and 2.2%, respectively. The industry's largest cryptocurrency is now trading at just under $17,000, while Ethereum is trading hands at $1,246.

Ethereum led liquidations over the same period, posting $12.57 million in blown-out leveraged positions. Bitcoin traders lost $9.25 million during the latest bearish impulse.

All eyes are on Tuesday's meeting with the House Financial Services Committee, during which Sam Bankman-Fried of FTX and Alameda Research is expected to testify to unpack how his crypto exchange collapsed last month.

"I still do not have access to much of my data -- professional or personal," he said last week in a conversation with House Chairwoman Maxine Waters. "So there is a limit to what I will be able to say, and I won't be as helpful as I'd like. But as the committee still thinks it would be useful, I am willing to testify on the 13th."

The Federal Reserve is also meeting on Wednesday, with the market expecting the central bank to raise interest rates by 50 basis points. Previous rate raises were 75 basis points, suggesting that the Fed is on its way to slowing down its attack on inflation given the latest data points.