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The crypto market has taken a dip today, with the global market cap falling by 1.76% to $3.88 trillion. While Bitcoin is staying close to its recent highs, many altcoins are under heavy selling pressure. Here’s a breakdown of what’s causing the sudden crash.
Altcoins are taking the biggest hit. Ethereum (ETH) is trading at $3,779.85, slipping 2.53% in the last day. XRP has dropped 4% in a day, even though it remains up over 10% for the week, currently priced at $3.12. Solana (SOL) and BNB are both down over 2.4% daily. Cardano (ADA), priced at $0.7878, is down 6.17% in 24 hours and has lost 10.81% over the week.
Dogecoin (DOGE) has also taken a sharp hit, down 7.64% today. Similarly, Sui (SUI) has tumbled 8.30% today. Overall, the market’s red zone performance shows investor reaction, profit-taking after recent rallies, and pressure from ongoing regulatory uncertainties.
Reasons Behind The Recent Crash
One of the reasons for the pullback may be the U.S. SEC’s decision to pause approval of new spot ETFs for altcoins. While Bitcoin and Ethereum ETFs have been given the green light, altcoin ETFs are still in limbo.
Experts and traders had expected the altcoin ETF approval to come soon, hoping it would bring in fresh money and drive prices up. But now, with no clear timeline, investors are stepping back and choosing to wait, creating panic selling in altcoin markets.
Additionally, many altcoins have doubled or even tripled in value over the past few months. Now that Bitcoin is consolidating near its $120,000 resistance level, traders are moving their profits from altcoins back into Bitcoin, which is seen as a “safer” asset. This rotation of money is pushing altcoin prices down even further.