 ▲ Altcoins |
Bitcoin (BTC) has rekindled hopes of a rebound by withstanding selling pressure of historic proportions and regaining the $70,000 level. However, a stark decoupling is emerging as most altcoins remain unable to escape their downward trends.
After a record plunge, renewed buying interest has pushed Bitcoin into a recovery phase. Over the past several days, prices fell sharply and rattled investor confidence, but a strong bounce from key support levels has allowed Bitcoin to claw back part of its losses. In contrast, major altcoins such as Ethereum (ETH), Solana (SOL), and XRP have struggled to match Bitcoin’s resilience and continue to show weak performance.
Fundstrat strategist Sean Farrell characterized the current market environment as a classic overreaction that presents a buy-the-dip opportunity. He noted that the recent decline stemmed more from short-term liquidity tightening and excessive leverage liquidations than from deterioration in fundamentals, adding that a return of institutional capital could enable Bitcoin to lead a broader market recovery. Indeed, the resumption of inflows into spot Bitcoin ETFs indicates buying interest emerging near perceived bottom levels.
Concerns over a broadly hawkish monetary policy backdrop continue to amplify volatility. The emergence of Kevin Warsh as a potential candidate for the next chair of the Federal Reserve, along with uncertainty surrounding the Trump administration’s tariff policies, is dampening risk appetite. Analysts caution that if Bitcoin fails to firmly establish itself above $75,000, further pullbacks may be unavoidable, with a dull sideways market potentially persisting into the second half of the year.
The altcoin market, in particular, is enduring an even harsher test than Bitcoin. XRP at one point plunged to $1.15, threatening a breakdown of key support, but has since staged a modest rebound and is consolidating. According to on-chain data, rising Bitcoin dominance underscores a clear concentration of capital into Bitcoin, reflecting a stronger preference among investors to seek refuge in the market leader with perceived safe-haven characteristics during periods of heightened uncertainty.
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