Last week, the cryptocurrency world witnessed a significant market adjustment, with Bitcoin short-term holders locking in profits, leading to a ripple effect across the board. According to insights from CryptoQuant, this strategic move contributed to a dip in the market, affecting major players like Ether, Solana’s SOL, BNB Chain’s BNB, and Cardano’s ADA, each seeing a decline of over 9%.
The market’s overall capitalization saw an 8% decrease within 24 hours, prompted by a downturn in Bitcoin’s value, which fell below $63,000 in European morning hours on Tuesday. This shift came on the heels of significant outflows from the Grayscale bitcoin ETF and subdued inflows into other ETF products on Monday, culminating in net outflows of $154 million.
Meme coins weren’t spared from the market’s volatility, with an average loss of 17%, led by dogwifhat (WIF) and floki (FLOKI) suffering 18% drops. Despite their strong performance earlier in the year, these coins’ inherent volatility was once again highlighted.
The broader cryptocurrency market, excluding stablecoins, mirrored this trend, with the top 20 coins nearly slumping by 10%. Such movements underscore the dynamic and ever-evolving nature of the cryptocurrency landscape, where investor sentiment and market dynamics can shift rapidly.
