Crypto Market Slide: The Underperformance of Altcoins
Cryptocurrencies XRP, Solana, and Dogecoin Experience a 5% Decline as the Crypto Market Shrinks
In the latest crypto market slump, Bitcoin is stealing the spotlight while top altcoins fail to keep up. After negative headlines about President Donald Trump's trade tariffs, the crypto market is down by almost 5% in the past 24 hours, as reported by CoinGecko. The main culprit? A pullback in altcoins such as XRP and Solana.
The duo has dropped by 4.5% and 5.1% respectively, surrendering their ground to Bitcoin, which has only declined by a modest 1.6% to reach $105,370. Other popular altcoins like Dogecoin, Sui, Chainlink, and Avalanche are also experiencing a downturn, with losses of nearly 8%, 3.3%, at least 5%, and more respectively.
The slide in altcoins has caused Bitcoin's dominance to rise once more, now standing at 64.14% according to TradingView following a four-year high earlier in the month.
The market's slowdown comes at a time of confirmed GDP contraction and dwindling ETF activity, leading some analysts to voice caution in the short term. For instance, investment firm BRN is de-risking in the near-term, maintaining its overweight position in Bitcoin but trimming its SOL position due to recent underperformance.
BRN Lead Research Analyst Valentin Fournier stated, "Bitcoin's dominance rose again, underscoring its resilience during market downturns. However, we expect short-term weakness, especially with limited ETF activity over the weekend." He also shared his prediction of a temporary drop towards $100K and further gains towards $130K-$150K, following which altcoins might regain their footing.
The ongoing legal battle over Trump's trade tariffs adds further market uncertainty, but one analyst told Decrypt that a swift change in policy outlook could reassure the market.
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- In the current crypto market slump, Bitcoin is outperforming the top altcoins such as XRP and Solana, while they fail to maintain their performance.
- The duo, XRP and Solana, have dropped by 4.5% and 5.1% respectively, contrasting with Bitcoin's modest 1.6% decline, bringing its price to $105,370.
- Other popular altcoins like Dogecoin, Sui, Chainlink, and Avalanche are also experiencing significant losses, ranging from almost 8% to more than 5%.
- The declining performance of altcoins has led to an increase in Bitcoin's dominance, now standing at 64.14%, as reported by TradingView.
- Amidst the market slowdown, confirmed GDP contraction, and dwindling ETF activity, some analysts are advising caution in the short term.
- Investment firm BRN is de-risking in the near-term, maintaining an overweight position in Bitcoin but trimming its SOL position due to the altcoin's underperformance.
- Despite market uncertainties, particularly the ongoing legal battle over Trump's trade tariffs, some analysts believe a swift change in policy outlook could reassure the crypto market.
