TL;DR
The crypto market dropped 2.8%, dragging altcoins down with it. Dogecoin fell 11%, and Solana lost 6.5% in just 24 hours.
Bitcoin held up better, sliding 2.2% to $104,000, while its dominance climbed past 64%, the highest level since 2021.
Caution is growing due to tensions between Trump and China, and limited liquidity is fueling volatility, hitting altcoins the hardest.
The crypto market took a heavy hit over the past 24 hours, with major altcoins like XRP, Solana, and Dogecoin seeing sharp losses.
Altcoins Sink as Bitcoin Maintains Strength and Market Dominance
Altcoins suffered deeper losses than Bitcoin, which weathered the downturn with less damage. While BTC dropped about 2.2%, closing near $104,000, XRP lost 5.1%, now trading at $2.16. Solana (SOL) slid roughly 6.5%, settling just above $158 per unit. Meanwhile, Dogecoin (DOGE) plummeted almost 11% to $0.197. Other major cryptocurrencies like Chainlink (LINK) and Avalanche (AVAX) also posted losses of 8% and 7%, respectively.
This bearish move coincided with a surge in Bitcoin dominance, which climbed past 64%, a level unseen in four years. It’s a common market pattern during periods of high volatility when investors seek shelter in stronger, more stable assets. The drop in Gross Domestic Product and reduced activity in exchange-traded funds (ETFs) have sparked fear among investors, leading to a more cautious stance.
Waiting for a Recovery
Investment firm BRN adjusted its strategy to navigate this scenario. It chose to reduce its overall exposure but kept a solid position in Bitcoin, trusting its relative stability. According to their analysis, BTC is likely to see a temporary drop to around $100,000 before recovering toward a range between $130,000 and $150,000. Once that rebound happens, altcoins could start regaining value.
At the same time, the release of the U.S. Core Personal Consumption Expenditures (PCE) index showed annual inflation slowing to its lowest level since March 2021. Even though this confirmed a disinflationary trend, markets didn’t respond positively and stayed in negative territory. The total crypto market cap fell 2.8% to $3.3 trillion, with over $700 million in liquidations during the period.
Geopolitical Uncertainty
Ongoing political and economic uncertainty continues to drive market volatility. Recent comments from President Donald Trump regarding trade disputes with China stirred additional tension, prompting investors to remain cautious. Market liquidity remains limited, which amplifies price swings, especially in altcoins
