The cryptocurrency market has entered sharp correction territory, experiencing a coordinated downturn where key digital assets fell significantly. Bitcoin (BTC) dropped by approximately 5.6% over a 24-hour period, pulling the broader market down. Major altcoins saw even steeper declines, with Ethereum (ETH) plunging around 9.1%, Solana (SOL) falling 8.3%, and XRP dropping 8.7%. This simultaneous slide across the major assets highlights the strong correlation between the crypto market and broader macroeconomic risk appetite.
Analysts attribute the synchronized market retreat primarily to recent hawkish monetary policy signals from the US Federal Reserve. Expectations for an aggressive Fed rate cut cycle have receded significantly following persistent inflation concerns and strong labor market data. This shift increases the opportunity cost of holding non-yielding, volatile assets like cryptocurrencies, triggering a broad “risk-off” rotation among large institutional investors.The sudden drop also accelerated profit-taking after several major altcoins reached recent highs. The coordinated nature of the sell-off underscores that major altcoins are not immune to the gravitational pull of Bitcoin and the macro environment, confirming that the crypto sector largely remains a risk asset class highly sensitive to traditional financial market indicators.
