Cryptocurrency Market Faces Declines as Major Players Slip Amid Profit-Taking

Major cryptocurrencies including Bitcoin, Ethereum, and Dogecoin suffered losses as traders made profit-taking moves. Bitcoin remained around $93,000 while XRP and other tokens saw declines exceeding 2%. Spot bitcoin ETFs attracted over $916 million, linked to Bitcoin’s emerging safe-haven status amid market volatility and geopolitical concerns affecting tradable assets.

The cryptocurrency market faced a downturn recently, with major players like Bitcoin, Ethereum, and Dogecoin experiencing notable losses. Reports indicated that Bitcoin, which held steady around $93,000, saw other cryptocurrencies, including XRP and Solana’s SOL, decline by more than 2%. The standout loser was dogecoin (DOGE), leading a market slump of up to 5% on a day when profit-taking by traders was rampant.

In terms of overall performance, the total market cap dipped by about 2.5%, while the CoinDesk 20 index—tracking the largest tokens—fell over 3%. Interestingly, spot bitcoin exchange-traded funds (ETFs) in the United States recorded impressive inflows of over $916 million. Analysts attributed this uptick to Bitcoin’s perceived role as a safe haven asset during turbulent times, particularly amidst the volatility seen in U.S. equities.

Vugar Usi Zade, COO at Bitget, emphasised that the inflows are connected to a declining U.S. dollar and Bitcoin’s allure as a safe haven amid equity market shifts. He noted that Bitcoin’s unique status as a diversification tool is growing as its correlation with stocks lessens. However, he also warned of short-term challenges due to poor investment signals, indicating that the market needs robust macroeconomic factors to spur positive movement.

Bitcoin’s so-called safe-haven narrative appeared to take shape because of its resilience, mirroring gold trends despite recent corrections in bond yields and stock prices due to ongoing trade tensions, particularly with China. Amidst this backdrop, President Trump stated he would not dismiss Federal Reserve Chair Powell, a comment that somewhat eased market jitters regarding economic policies.

Still, traders seem on edge as mixed signals from the political landscape could affect the market; comments regarding federal leadership have prompted a slight reduction in yield expectations. QCP Capital, based in Singapore, has noted that while more risks remain, at least one major concern about Fed leadership seems resolved for now.

The firm cautioned, however, that various factors, including trade disputes and regulatory uncertainty, continue to loom large and create an unpredictable environment.