TL;DR
- The crypto market loses momentum with drops of up to 9.35% in altcoins like Cardano, reflecting a generalized bearish trend.
- Bitcoin remains relatively stable with a 3.72% decline, maintaining a market cap of $1.8 trillion.
- Macroeconomic factors like a strong dollar, rising bond yields, and inflationary pressures are severely impacting risk assets.
The cryptocurrency market continues to face a sharp correction over the past 24 hours, with significant losses across all major digital currencies. Bitcoin (BTC), although more resilient than altcoins, dropped 3.72%, trading at $91,092.85 while keeping its market capitalization at $1.8 trillion. Ethereum (ETH) remains one of the hardest hit, declining 6.35% and trading at $3,040.75.
Altcoins Face Greater Losses
Cardano (ADA) leads the losses with a 9.35% drop, reaching $0.9055, while Solana (SOL) follows closely with a 6.54% decline, trading at $175.94. Other major altcoins also reported losses: Binance Coin (BNB) fell 3.38% to $669.25, XRP dropped 5.15% to $2.38, and Dogecoin (DOGE) lost 5.62%, settling at $0.3187.
The outlook is equally challenging for Tron (TRX), which fell 7.11% to $0.2204. Overall, altcoins are facing heavier selling pressure, exacerbated by the increase in Bitcoin dominance, which now accounts for 54.8% of the total crypto market. Meanwhile, Ethereum’s market share has dropped to 11.3%, highlighting a shift in investor preferences during the bearish phase.
Macroeconomic Conditions: The Key Factor
The strength of the U.S. Dollar Index (DXY), surpassing 110 points, coupled with rising U.S. Treasury yields , with the 10-year bond at 4.89% , has triggered an outflow of capital from risk markets, including cryptocurrencies. This reflects growing expectations of tighter monetary policies from the Federal Reserve throughout 2025. Additionally, increasing concerns about global inflation have further dampened investor confidence in digital assets, as traditional safe havens like gold and treasury bonds attract more attention.
Despite the selling pressure, some analysts see long-term opportunities. According to CryptoQuant, these phases of capitulation are often a precursor to recovery, especially when long-term investors take advantage of lower prices to accumulate assets. However, in the short term, uncertainty prevails as markets await upcoming inflation data (CPI), which could determine if the bearish pressure continues.
While the market is experiencing a period of instability, history suggests that crises often create opportunities for the patient and strategic. The key will be monitoring crucial metrics and adapting to changing market conditions.
