The cryptocurrency market has just recorded a sharp correction as global capitalization decreased by 1.76% to 3.88 trillion USD. Although Bitcoin remains stable near the peak of 120,000 USD, altcoins are experiencing significant price drops, reflecting cautious sentiment and a shift in defensive cash flow.
Main reason:
The U.S. Securities and Exchange Commission (SEC) has temporarily delayed the approval of new altcoin ETFs, leading to strong sell-offs in risky assets. While Bitcoin and Ethereum already have ETFs attracting capital, altcoins have lost their competitive edge, prompting investors to ramp up profit-taking.
Cash flow pivot:
Investors are moving capital back to Bitcoin – a safe-haven asset during periods of instability. Tokens that previously increased 2-3 times are now under strong profit-taking pressure.
Notable fluctuations in 24h:
Ethereum (ETH): -2.53%
Cardano (ADA): -6.17%
XRP: -4%
Dogecoin (DOGE): -7.64%
Outlook:
If the SEC does not soon provide positive signals regarding altcoin ETFs, selling pressure may continue to increase in the next quarter. Bitcoin is forecasted to continue leading as cash flow prioritizes safe assets.