Major altcoins like XRP drop as crypto run slows down—Bitcoin remains strong

Cryptocurrency markets experienced a significant pullback on Tuesday and Wednesday, with major altcoins suffering heavy losses after reaching euphoric highs following President Trump's signing of landmark stablecoin legislation, according to Decrypt's market analysis. Among the top 20 cryptocurrencies, Hedera led the decline with a 5.2% drop, while Hyperliquid fell 5.1% during the same period. Ethereum dropped 2.6%, Chainlink declined 3.3%, and Dogecoin fell 1.5% in 24 hours.

Other major digital currencies also retreated, with Stellar down 4.1%, Cardano falling 2.8%, and Sui dropping 2.8%. The market correction came exactly one week after XRP reached an all-time high above $3.41, Decrypt reported, breaking a seven-year record that experts linked to renewed institutional interest following Trump's crypto-friendly policies. Lead Analyst at CEX.IO Illia Otychenko explained to Decrypt that this appears to be a healthy correction after strong double-digit gains in recent weeks, noting that such pullbacks are common when momentum indicators show assets reaching overbought levels on daily charts.

Market expert Jim Wyckoff, who has over 25 years of experience in financial markets, continues to monitor Bitcoin's chart consolidation pattern as reported by Kitco News. The veteran analyst, known for his work on commodity futures trading floors in Chicago and New York, provides technical analysis through his advisory service, reporting that Bitcoin showed resilience compared to altcoins. Bitcoin managed a 1% gain to over $119,000 despite pulling back from last Monday's record high of $123,000. Wyckoff's extensive background includes roles as a financial journalist with FWN newswire service and as a technical analyst for Dow Jones Newswires, giving him unique insight into market movements. His educational approach through analytical services helps traders understand market dynamics during volatile periods.

The consolidation phase Bitcoin is experiencing represents a natural pause following the signing of the GENIUS Act, America's first major cryptocurrency legislation, establishing regulatory frameworks for stablecoins. Kitco News, with its diverse team of journalists covering cryptocurrencies and financial markets, continues providing comprehensive coverage of these significant market developments as Bitcoin maintains relative stability while altcoins face correction.

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 The sharp altcoin decline pushed Bitcoin dominance back above 60% as the world's oldest cryptocurrency remained relatively stable, CoinDesk data analysis reveals. More than $200 million worth of long positions were liquidated during this market correction, with $43 million specifically from Ethereum markets and $32 million from XRP trading. Solana and Toncoin were particularly hard hit, losing 7% and 11% respectively during the downturn. These sudden drops relate directly to liquidity differences between altcoin trading pairs and Bitcoin markets. Bitcoin maintains approximately $40 million market depth on both Binance and Coinbase, while XRP shows only $5-6 million on either side, meaning large sell orders create significant price slippage.

Oliver Knight, co-leader of CoinDesk's data tokens team, notes that Ethereum's open interest remains at $24 billion, significantly higher than the $10 billion seen during its 2021 peak, indicating recent moves were driven by leverage. CoinMarketCap's altcoin season indicator dropped from 55 to 47 out of 100, demonstrating sector weakness despite increased retail participation. According to CoinDesk analysis, altcoin season may return if Bitcoin forms a new record above $124,000 and consolidates, allowing capital rotation to more speculative altcoin investments.