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- Bitcoin’s drop below $90K triggered market-wide liquidations and profit-taking.
- ETH, XRP & SOL demonstrated resilience, showing selective liquidity rotation.
- Altcoin strength reflects narrative-driven trading, ETF developments, and market hedging.
Bitcoin’s price recently dropped below $90,000, sending shockwaves through the cryptocurrency ecosystem. The market capitalization fell from nearly $4 trillion to about $3 trillion, while trading volume surged close to $230 billion. This sharp decline triggered widespread liquidations and profit-taking, fueling bearish sentiment across global markets. Yet, amid the chaos, Ethereum (ETH), XRP, and Solana (SOL) displayed notable resilience, signaling a rotation of liquidity from Bitcoin to these top altcoins.
Ethereum, XRP & Solana Show Strength
Ethereum briefly dipped under $3,000 but quickly bounced back to reclaim this psychological support. Trading volumes spiked from $33 billion to over $48 billion, highlighting strong buying interest attempting to prevent further downside. XRP maintained strength above $2 despite losing its $2.24–$2.27 support zone. Traders remain optimistic due to the anticipated impact of upcoming XRP ETFs. Solana also rebounded impressively from lows below $130 to above $135, hinting at buyers capitalizing on perceived opportunities, with SOL ETF developments contributing to the bullish sentiment.
Also Read: Bitcoin Drop Signals a Market Bottom
Understanding Bitcoin–Altcoin Divergence
The market is witnessing a growing divergence between Bitcoin and major altcoins. Large Bitcoin holders trimmed positions, derivatives markets faced rapid unwinding, and selling pressure intensified below key psychological levels. Altcoins, however, reacted differently due to distinct liquidity profiles, narratives, and investor interest. Traders rotated into resilient altcoins like XRP to hedge volatility, while Ethereum benefited from deep liquidity and ETF flows that buffered sharp swings. Solana’s rapid recovery shows how narrative-driven positioning can drive selective altcoin strength even during broader market weakness.
Altcoins Gain Spotlight
Bitcoin’s drop below $90K underscores market volatility, but altcoins are emerging as the focal point for selective trading. Ethereum, Solana, and XRP show varying resilience, suggesting traders are evaluating fundamentals individually rather than following Bitcoin blindly. Moving forward, the trajectory of altcoins may define the next major trend, while Bitcoin’s ability to reclaim lost levels will determine if the market’s divergence persists or narrows.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
