The cryptocurrency market is taking a break because major tokens are losing value. Bitcoin is still trading sideways around $118,600, while Ethereum and XRP are going down. Dogecoin is at the top of the downturn, with big losses. Tron is going against the trend and making big gains and strong retail momentum, which is surprising.
Bitcoin stays the same, while other big cryptocurrencies drop. Dogecoin is down more than 5% and Ethereum is down 1.2%. XRP also went down, but Tron was the only one that did well, going up 6.5% in 24 hours.
Analysts say that the market is being careful and is in a reassessment mode because ETF inflows are slowing down and liquidations are going up.
What is making Bitcoin and Ethereum heavy?
Bitcoin (BTC) stayed mostly the same on Tuesday morning, trading just under $118,600 as the rest of the crypto market cooled off. Data from Glassnode shows that ETF inflows have dropped 80% in the past week, which means that institutions are less interested. The amount of trading has also dropped to $18.7 million, which could mean that investors are starting to “reassess.”
The flat price action shows that people are being careful. Glassnode saw signs that sellers were getting tired, but they also said that the market is still weak and reacts strongly to bad news. Bitcoin dropped only 0.2% in a day, but Stocktwits traders were still negative.
The second biggest cryptocurrency, Ethereum (ETH), also went down, losing 1.2% to $3,850. Retail traders’ bearish sentiment grew overnight, which suggests that momentum is fading even though ETH is still near multi-month highs.
What makes Dogecoin the leader in the sell-off?
Meme coin Dogecoin (DOGE) lost the most, dropping 5.6% in just one day. DOGE has dropped almost 15% in the last week and is now trading at about $0.2266. Retail sentiment is still falling, even though the stock is popular, and traders seem to be pulling back because the market is uncertain.
XRP dropped 3% to $3.14, continuing its downward trend with no help from retail investors. The token has lost steam since it briefly tested key resistance earlier this month.
How is Tron doing better than the market?
Most major altcoins fell, but Tron (TRX) was the only one that went up, gaining 6.5% in the last 24 hours and 25% in the last 30 days. Its strong performance has turned retail sentiment from neutral to bullish on Stocktwits, which shows that investors are interested again.
The sudden rise in market volatility caused more than $464 million in liquidations, mostly from long positions. Ethereum lost the most money, $131 million. Bitcoin lost the second most, $44 million.
The crypto market is very unstable, but stocks that are related to crypto, such as MicroStrategy (MSTR), Marathon Digital (MARA), and Coinbase (COIN), were all trading a little higher before the market opened.
As the market settles down, traders are keeping a close eye out for the next event that could either start up the momentum again or make the current correction worse.
Also read: PayPal Now Lets U.S. Merchants Accept Over 100 Cryptocurrencies, Including Bitcoin, Ethereum, etc.
