Altcoins Take a Hit as Bitcoin Slips Below $95,000

The cryptocurrency market started the week on a bearish note as investors processed the aftermath of the $1.5 billion ByBit hack, alongside a continued slump in technology stocks. Bitcoin (BTC) briefly dropped below $94,000, triggering significant losses in major altcoins like Ethereum (ETH) and Solana (SOL).

Market Overview

Over the last 24 hours, Bitcoin has declined to $94,000, marking a steep fall of nearly 2%. Ethereum dropped over 5% to $2,650, while Solana plunged 8.5% to $153. The global cryptocurrency market capitalization has decreased by 3.4%, standing at $3.22 trillion, as per CoinGecko data.

Altcoins Experience Major Losses

A vast majority of the top 100 digital assets recorded losses, with Solana-based decentralized exchange Raydium (RAY) suffering a 25% drop. This sharp decline followed the announcement that memecoin launchpad PumpFun is testing its own automated market maker (AMM).

Meanwhile, Ethena (ENA), Hyperliquid (HYPE), and Optimism (OP) have each declined by 10%, despite Ethena securing $100 million in funding to develop a synthetic dollar product aimed at institutional investors.

Top Gainers and Liquidations Contrasting the overall bearish sentiment, Story Protocol (IP) surged 17% in the last 24 hours. Other altcoins such as Hedera (HBAR), Bittensor (TAO), SEI, and Sonic (S) managed to post minor gains.

However, the downturn led to widespread liquidations, with nearly 150,000 leveraged traders facing losses amounting to $382 million in the past day. Bitcoin liquidations stood at $88 million, followed by Ethereum at $72 million, according to CoinGlass data.

ETPs Record First Outflows in 19 Weeks

Adding to the market downturn, exchange-traded products (ETPs) experienced their first net outflows in 19 weeks. Bitcoin took a substantial hit, recording outflows of $430 million. Analysts attribute this decline to inflation concerns and the Federal Reserve’s hawkish stance.

Despite the general negative trend, some altcoins saw inflows. Solana led with $8.9 million, followed by XRP ($8.5 million) and Sui ($6 million). Blockchain equities also saw inflows of $20.8 million, pushing their year-to-date total to $220 million.

Analyst Insights on Market Trends

Sid Powell, CEO of Maple Finance, stated that the current 3% decline is largely influenced by macroeconomic factors, particularly concerns over persistent inflation. “The market remains sensitive to inflation data, as it impacts expectations for potential interest rate cuts,” Powell noted. He further highlighted that a shift in the macroeconomic landscape could rapidly reverse the current bearish sentiment.

Looking Ahead

While the crypto market is currently experiencing a pullback, investors remain watchful for potential market catalysts that could drive a reversal. Key factors to monitor include regulatory updates, Federal Reserve policy changes, and institutional investment trends.

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