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Altcoins such as Dogecoin (DOGE), Solana (SOL), and Cardano (ADA) experienced sharper declines than Bitcoin during Thursday’s market pullback, signaling a routine market correction.
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Despite initial optimism following favorable inflation data, traders shifted their focus back to Bitcoin, favoring its relative stability over riskier altcoins amid macroeconomic pressures.
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According to Dr. Kirill Kretov of CoinPanel, these sub-5% to 10% price swings in altcoins are typical market noise rather than indicators of fundamental changes.
Altcoins including DOGE, SOL, and ADA fell more sharply than Bitcoin in a routine market correction amid profit-taking and macroeconomic concerns.
Altcoins Lead Market Decline Amid Profit-Taking and Macroeconomic Headwinds
The crypto market saw a notable divergence on Thursday as altcoins such as Dogecoin, Solana, and Cardano recorded losses exceeding 5%, outpacing Bitcoin’s relatively mild 2% decline. This pullback followed a brief surge triggered by positive inflation data, which initially boosted investor sentiment. However, the strengthening US dollar and rising government bond yields have dampened appetite for riskier assets, prompting traders to realize profits in volatile altcoins. Dogecoin dropped 5.8% to $0.19, while Solana and Cardano fell 3.9% and 5.1% respectively, reflecting a broader retreat across the altcoin market.
Market Experts Attribute Selloff to Routine Correction Rather Than Fundamental Shift
Industry analysts emphasize that the recent altcoin selloff is a typical market correction rather than a sign of deteriorating fundamentals. Dr. Kirill Kretov, Senior Automation Expert at CoinPanel, described the price movements as “noise” within expected volatility ranges, noting that swings up to 10% are common in altcoins. Tracy Jin, COO of MEXC, highlighted profit-taking behavior as a key driver, alongside macroeconomic factors such as the US dollar’s strength and higher bond yields, which traditionally reduce demand for speculative investments. These insights suggest that the market is undergoing a short-term adjustment phase rather than a sustained downturn.
Dogecoin Faces Medium-Term Challenges Amid Public Controversy
While the broader altcoin market correction appears routine, Dogecoin faces additional headwinds linked to recent public disputes involving its prominent backer, Elon Musk. Paul Howard, Senior Director at Wincent, noted that Dogecoin is likely entering a medium-term decline phase, diverging from typical daily volatility patterns. This sentiment reflects concerns about Dogecoin’s market positioning following high-profile controversies that may impact investor confidence. Nonetheless, Dogecoin’s price movements remain within the broader context of market fluctuations experienced by similar “Made in USA” coins.
Bitcoin’s Stability Provides a Foundation for Potential Altcoin Recovery
Despite the current weakness in altcoins, market participants remain cautiously optimistic about the medium-term outlook. Tracy Jin pointed out that if Bitcoin maintains levels above $100,000 and institutional inflows persist, renewed interest in altcoins could emerge. The current phase is viewed as a “short-term overload” that may serve as a launchpad for the next growth cycle. This perspective underscores Bitcoin’s role as a market anchor, providing relative stability that could eventually bolster altcoin performance once volatility subsides.
Conclusion
The recent market pullback highlights the inherent volatility of altcoins compared to Bitcoin, driven by profit-taking and macroeconomic factors. While altcoins like Dogecoin, Solana, and Cardano experienced sharper declines, experts characterize these movements as routine corrections rather than fundamental shifts. Bitcoin’s resilience amid the selloff offers a stabilizing influence, suggesting that the crypto market may be poised for renewed growth once current pressures ease. Investors should monitor macroeconomic indicators and institutional activity closely to gauge the timing of potential altcoin rebounds.
