Bitcoin News Today: Bitcoin Slumps 2.5% on Galaxy Sell-Off as Altcoins Rally to New Highs

The cryptocurrency market experienced a dramatic shift in momentum this week, with Bitcoin (BTC) losing its dominant position as alternative coins surged. Following a brief all-time high above $123,000, BTC’s price collapsed by $7,000 and has since remained in a narrow consolidation phase between $117,000 and $120,000. A sharp sell-off by Galaxy Digital, which offloaded $1.5 billion worth of BTC, pushed prices below $115,000 for the first time in two weeks, leaving the asset down over 2.5% on a weekly basis. Meanwhile, Ethereum (ETH) and Binance Coin (BNB) emerged as standout performers, signaling a broader reallocation of investor capital toward altcoins [1].

Ethereum’s rally was driven by robust inflows into spot ETFs, propelling its price to $3,850 before a modest pullback. As of press time, ETH traded at $3,684, reflecting a 1.2% weekly gain. Binance Coin, the native token of the world’s largest exchange by trading volume, reached a fresh all-time high above $800 before retreating slightly. The market’s shift has been further underscored by speculative altcoins like Litecoin (LTC), Enjin Coin (ENA), and Cronos (CRO), which recorded significant gains this week. However, the altcoin frenzy faced a setback as tokens such as XRP, XLM, and HBAR plummeted by double digits following sharp corrections [1].

Market data highlights the structural changes in crypto dynamics. The total market capitalization of cryptocurrencies stood at $3.876 trillion, with Bitcoin’s dominance at 59.4%, a decline from its recent peak. BlackRock’s Ether ETF (ETHA) became the third-fastest fund to reach $10 billion in assets under management within its first year, underscoring institutional confidence in Ethereum. Analysts at Bitfinex attributed BTC’s relative underperformance to a strategic shift by investors toward more speculative assets, with altcoins like BNB benefiting from increased risk appetite [1].

The week also saw technical indicators pointing to potential turning points for Bitcoin. The completion of the Hash Ribbons signal—a metric tracking miner capitulation—suggested that the asset may be nearing a phase of reduced selling pressure. However, CryptoQuant’s analysis revealed that recent BTC rallies were primarily fueled by institutional activity, with minimal participation from retail investors. This dynamic raises questions about the sustainability of Bitcoin’s near-term recovery [1].

Despite the divergence in performance, the market remains highly volatile. While Ethereum and BNB capitalized on speculative flows, Bitcoin’s fragility in the short term has been reinforced by its inability to break above key resistance levels. The broader market’s reliance on macroeconomic catalysts and regulatory clarity will likely determine whether altcoins maintain their momentum or cede ground to BTC in the coming weeks [1].

Source: [1] [ETH Steals the Spotlight, BNB Taps New Record, BTC Cools Off: Your Weekly Crypto Recap] [https://coinmarketcap.com/community/articles/6883986684643e61671891cd/]