Crypto Market Plummets 4.5% to 6.3% as SEC Delays ETFs

The cryptocurrency market experienced a significant downturn on June 12, 2025, with major altcoins such as Solana (SOL), Dogecoin (DOGE), Cardano (ADA), and Avalanche (AVAX) facing substantial devaluation. This decline was primarily driven by the U.S. Securities and Exchange Commission’s (SEC) decision to delay several spot ETF applications, breaches in technical support levels, and a general reduction in market risk appetite. Additionally, Bitcoin’s (BTC) depreciation contributed to the downward pressure on altcoin prices.

Solana, in particular, saw a 4.5% value loss within 24 hours. This drop was triggered by the SEC’s request for updated S-1 forms from ETF applicants, including 21Shares. The regulatory body’s uncertainty regarding whether SOL’s staking returns exceeding 5% might be classified as securities added to the complexity. Following the $23 million long position liquidations in May, these developments led to a “sell on news” phenomenon. The 2.46% decline in Bitcoin further intensified Solana’s value loss, given the high correlation between the two at a level of 0.87. Technically, SOL lost the crucial $160 support level, which is the 20-day simple moving average. Weak MACD signals and RSI-14 figures falling below its 21-day average confirmed the bearish momentum.

Dogecoin suffered a substantial 6.3% devaluation, exacerbated by Bitcoin dropping below $110,000 and broader market distress. DOGE faced resistance at its pivot point and the 23.6% Fibonacci level, while dipping below the 10-day simple moving average. An RSI-14 level at 46.28 and weak bullish signals in the MACD histogram increased selling pressure. Macroeconomic developments, such as tariff announcements, prompted risk aversion, affecting DOGE’s outlook.

Cardano dropped 5.4%, negatively impacted by the SEC postponing its decision on Grayscale’s Cardano ETF application to late June 2025. ADA couldn’t maintain its position above the 38.2% Fibonacci level and fell below the 10-day average. The shrinking bullish bars in the MACD histogram indicated weakening upward momentum.

Avalanche’s value diminished by 5.6% as Bitcoin fell below $108,000, erasing $70 billion in overall market value. AVAX failed to sustain its critical support in the $22.20-$22.25 range. The SEC postponed Grayscale’s AVAX ETF decision to July 15, while pre-G7 summit uncertainty further encouraged cautious investor behavior. With an RSI level at 49.64, AVAX appeared neutral but trended downward.

In summary, the cryptocurrency market faced a significant decline on June 12, 2025, driven by the SEC’s delay in key ETF filings, technical support breaches, and reduced market risk appetite. The devaluation of major altcoins was exacerbated by Bitcoin’s depreciation, leading to a domino effect across the market. The regulatory uncertainty and macroeconomic developments further contributed to the bearish sentiment, prompting cautious investor behavior and increased selling pressure.