Crypto Market Slumps 40% as Bitcoin and Ethereum Drop 0.4% and 1.7%

Bitcoin experienced a minor price decline over the past 24 hours, falling 0.4% to $107,294. Despite a trading volume exceeding $22.5 billion, the asset showed signs of market fatigue after a recent upward movement.

Ethereum also experienced downward pressure, reducing by 1.7 percent to reach a trading price of 2,440.45. With nearly $15 billion in daily trading activity, the second-largest cryptocurrency failed to hold its previous momentum.

XRP was the most scorching of the largest digital assets, dropping by 4.4 percent to 2.09 dollars. The asset’s daily trading volume was more than $2.6 billion, but it could not sustain its previous weekly gains.

BNB declined by 0.5 percent to close at 644.72, signaling a safe attitude by the investors. The daily volume was less than 620 million dollars as traders monitored market signals.

Solana was down by 2.9 percent to reach 140.57 dollars. The asset recorded a large trading volume of more than 4 billion dollars, but it was not spared in the wave of losses in broader markets due to a decline in enthusiasm.

Dogecoin was next and dropped by 2.3% to $0.1608, stabilizing near a billion in trading volume but failing to withstand the downside wave hitting prominent coins.

While most top cryptocurrencies posted losses, two lesser-known altcoins defied the trend. BXN, with a volume of $1.17 million, saw a price spike marking it as the strongest performer of the day. Close behind was TAGGER, up 42.5 percent to $0.0003336 on a considerable trading volume of more than $98 million, demonstrating a high rate of interest and active buying on the market.

Solid gains were witnessed on other altcoins as well, but not exceeding 40 percent. BULLA increased 35.3 percent to 0.09626, AI Companions (AIC) advanced 33.3 percent to settle at 0.1592, and QANX increased 22.8 percent to 0.02702.

Bitcoin, Ethereum, and other major cryptocurrencies slipped in the last 24 hours, but BXN and TAGGER defied the market with explosive gains. Their sharp rise highlights crypto traders’ continued appetite for high-risk, high-reward plays.

The cryptocurrency market experienced a significant downturn, with major digital assets such as Bitcoin and Ethereum, along with several other altcoins, witnessing substantial declines. This market correction was marked by a notable 40% drop in the value of two prominent cryptocurrencies, highlighting the volatility inherent in the digital asset space. The decline in Bitcoin and Ethereum prices was particularly striking, as these two cryptocurrencies are often seen as bellwethers for the broader market.

The drop in Bitcoin and Ethereum prices was accompanied by a broader sell-off in the altcoin market. Major altcoins, which had previously shown strong performance, also experienced significant declines. This widespread correction underscored the interconnected nature of the cryptocurrency market, where movements in major assets often ripple through to smaller, less established coins.

Despite the near-term pressure, there were signs of institutional interest and potential long-term optimism. Institutional buying and ETF inflows continued to support the market, suggesting that some investors were viewing the correction as a buying opportunity. Analysts flagged potential short-term volatility but remained bullish on the long-term prospects of major cryptocurrencies like Ethereum. The Ethereum network, in particular, has been a focal point for innovation, with its smart contract functionality and decentralized applications (DApps) continuing to shape the digital landscape.

The decline in Ethereum's price was notable, with the cryptocurrency dropping to a low of $2,400. Analysts suggested that Ethereum could be testing the lower end of its trading range, but there were also indications of bullish momentum. Technical indicators, rising ETF inflows, and a potential capital rotation from Bitcoin signaled a possible breakout above $2,500. However, weak demand and cautious sentiment among pro traders clouded the bullish outlook, highlighting the mixed signals in the market.

The broader market correction was also influenced by external factors, such as geopolitical tensions and regulatory developments. The potential for interest rate cuts from the US Federal Reserve and the ceasefire between Iran and Israel were cited as factors that could influence market sentiment. Additionally, the rise of new blockchains and the fragmentation of liquidity in the decentralized finance (DeFi) space posed challenges to the core advantages of composability and interoperability.