The cryptocurrency market experienced an unexpected 3% pullback despite Bitcoin (BTC) briefly reaching an all-time high of $112K. Major altcoins like Ethereum, XRP, Solana, and Dogecoin declined 3%–5%, sparking concerns among investors. Below, we analyze the key factors behind this downturn.
Bitcoin’s Profit-Taking Triggers Market Slide
Bitcoin’s 2.6% drop (from $112K to ~$108,460) within 24 hours set off a chain reaction. The primary cause? Profit-taking—investors who bought BTC at lower levels sold after the peak, creating selling pressure. This behavior is typical after a sustained rally, as traders lock in gains.
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Over Half a Billion in Liquidations
The market downturn led to $544 million in liquidations across 163,000 traders. Notably:
- A single $9.5M trade was liquidated on OKX.
- Long-position traders lost $400M+, exacerbating the slide.
Altcoins Suffer Heavier Losses
Altcoins underperformed Bitcoin significantly:
- Ethereum (ETH): Down 4.3% ($2,541)
- XRP, Solana, Cardano: Lost 1%–4%
- Memecoins: Dogecoin (-3.9%), Shiba Inu (-3.5%), and a Trump-themed token plummeted 13%.
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FAQs
What is profit-taking in crypto?
When investors sell assets after price surges to secure gains, often causing short-term declines.
Why did Bitcoin drop from $112K?
Investors who bought at lower prices sold to capitalize on the peak, triggering a sell-off.
How did altcoins respond?
Altcoins like Ethereum and memecoins fell harder (3%–13%) due to their higher volatility and reliance on Bitcoin’s trends.
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