Prominent cryptocurrencies Solana (SOL), Ripple’s XRP, and Dogecoin (DOGE) faced significant price declines, dropping 5.9%, 5%, and 7% respectively.
This widespread correction follows a period of relative stability for Bitcoin, which exhibited resilience while the broader altcoin market experienced heightened selling pressure. The downturn reflects cautious investor sentiment amidst a broader market pullback.
The correction has triggered substantial leveraged liquidations. Data reveals daily liquidations exceeding $250 million for a fifth consecutive day, with a sharp skew towards long positions closing at a roughly 3:1 ratio compared to shorts.
Macroeconomic conditions, characterized by rising real yields and ongoing pressures, are cited as key factors dampening sentiment across both Bitcoin and the altcoin sector, contributing to the risk-off mood.
Bitcoin’s comparative stability during this period underscores its role as a relative anchor in the volatile cryptocurrency market.
Additionally, traditionally thinner liquidity conditions prevalent during the summer potentially exacerbate price movements, intensifying the declines seen particularly in altcoins like Solana, XRP, and Dogecoin.