Takeaways:
- The global crypto market cap dropped 2.5% to $3.44 trillion, marking another day of losses.
- Altcoins are leading the decline, with Solana (-8.48%), XRP (-6.21%), and Cardano (-7.1%) among the hardest hit.
- Bitcoin dominance rose to 59%, signaling a flight to safety as investors exit smaller-cap assets.
- The Fear & Greed Index sits at 27 (“Fear”), while the average crypto RSI of 37.78 points to oversold conditions.
- Analysts warn that altcoins remain vulnerable, though some expect a near-term stabilization if Bitcoin holds above $102,000.
The crypto market remains under heavy selling pressure, with altcoins taking the brunt of losses as investors retreat to Bitcoin. The total market cap slipped 2.48% to $3.44 trillion, while the CMC20 index dropped 3.57%, extending last week’s downtrend.
According to CoinMarketCap data, Bitcoin’s dominance has surged to 59%, its highest level since mid-2024, as traders de-risk portfolios amid rising volatility. The Fear & Greed Index plunged to 27, signaling deep investor caution, while the average crypto RSI of 37.78 indicates oversold market conditions.
Altcoins Face Steep Losses
Altcoins have suffered disproportionate declines compared to Bitcoin. Over the past 24 hours, Solana (SOL) fell 8.48%, XRP (XRP) slid 6.21%, and Cardano (ADA) dropped 7.1%. Dogecoin (DOGE) declined 6.8%, while Chainlink (LINK) and Stellar (XLM) each lost over 5%.
Even top performers of recent months, such as Hyperliquid (HYPE) and Sui (SUI), have been hit hard, plunging over 19% and 22% respectively in weekly terms. Analysts attribute the sell-off to low liquidity, fading retail enthusiasm, and profit-taking among institutional traders.
“Altcoins are structurally weaker right now,” one analyst explained. “When Bitcoin dominance climbs, capital naturally flows out of smaller assets. Combined with macro headwinds, this creates sharper downside moves.”
Market Sentiment Turns Defensive
Across derivatives markets, long liquidations continue to accelerate, reflecting elevated stress among leveraged traders.
Macroeconomic factors are also weighing heavily on sentiment. Persistent inflation concerns, weak tech stock performance, and ETF outflows have contributed to the “risk-off” tone. Institutional traders are trimming exposure ahead of November’s U.S. CPI data release, while retail participants remain largely sidelined.
Outlook: Oversold Conditions, but Fragile Confidence
Despite the sharp declines, several metrics suggest the market could be nearing short-term exhaustion. The RSI readings for many large-cap altcoins now hover near oversold territory, historically associated with temporary relief rallies.
Still, analysts caution that confidence remains fragile. “We’re seeing fear levels similar to early 2023,” said a report from CryptoQuant. “While that can be a contrarian signal, buyers are waiting for Bitcoin stability before reentering altcoin positions.”
With Bitcoin holding near $102,700 and dominance approaching 60%, traders are closely watching for signs of reversal, or another wave of capitulation.