The post Why Crypto Market is Down? Bitcoin Struggles While Altcoins Face Major Losses appeared first on Coinpedia Fintech News
Bitcoin’s current weakness below $100K and the sharp decline in altcoins have puzzled many. Following the heat of Trump’s trade war the entire crypto saw the bloodbath and majority of altcoins faced market rejections. While Bitcoin recovered slightly and traded at $97K, altcoins continue to feel the selling pressure Ethereum, XRP, Solana, Dogecoin, Cardano saw a correction of 3-4% today.
Looking at the market scenario, altcoins selling pressure might continue as there is no upcoming event to boost the altcoins as Bitcoin Reserve plans are still not confirmed and crypto regulations will also take time to implement.
Why is Bitcoin Struggling While Altcoins Are in Freefall?
crypto analyst CryptexGuy sheds light on this trend, tracing it back through Bitcoin’s historical cycles. Before 2019, the crypto market was still maturing, which led to Bitcoin dropping 88% before skyrocketing by 12,000%. Altcoins mirrored this volatile pattern.
The 2018-2021 Era: A Boom Fueled by Crisis
During the 2018-2021 period, Bitcoin dipped around 85% but bounced back with nearly 2000% gains. This surge was fueled by the COVID-19 pandemic, which pushed people to seek new income streams. The rise of NFTs and Ethereum’s expanding ecosystem provided an alternative economic avenue. However, as the world recovered from the pandemic and people returned to traditional jobs, both Bitcoin and altcoins suffered.
2022-2025: A New Cycle, Same Story
In the current era, Bitcoin experienced another sharp drop of about 77% due to factors like the end of COVID lockdowns and the FTX and Luna crashes. However, it has since rallied from $15,000 to over $109,000—a staggering 600% gain. This growth has been driven by institutional investments and government involvement in Bitcoin mining, putting BTC in the spotlight this cycle.
Altcoins: Struggling to Survive?
Altcoins, once jumped by the NFT craze and Ethereum’s ecosystem, now find themselves lacking behind. The Analyst noted that this cycle is dominated by meme coins and Bitcoin’s strategic importance to the U.S. reserve. While some altcoins like XRP (thanks to SEC developments), ONDO, HBAR (linked to BlackRock hype), and AI-related tokens have managed to grab attention, most are struggling. CryptexGuy believes an altseason could still happen, but not every coin will rise.
Technically Altcoin Survival Depends on?
Adding to the above theory, traders like Titan of Crypto point to technical patterns like the “Gravestone Doji” on Bitcoin Dominance (BTC.D), hinting at a potential altcoin revival. Yet, analysts like Rekt Capital argue that unless Bitcoin dominance reaches 71%, any altcoin rally historically will be short-lived. Bitcoin ETFs are attracting most of the capital, leaving altcoins in the shadows. For now, Bitcoin holds the key to the next big shift in the crypto market.
