Key Points
- Cryptocurrencies continue to decline, with a noticeable drop on Tuesday following a significant shakeout the previous day.
- XRP, Polkadot (DOT), Litecoin (LTC), Aptos (APT), and Cardano (ADA) experienced losses of 15% within the last 24 hours. The CoinDesk 20 Index, which tracks the top 20 cryptocurrencies, dropped by nearly 10%.
- The downward trend may be due to investors anticipating forthcoming inflation data scheduled for release on Wednesday, according to Ruslan Lienkha, Chief of Markets at Youholder.
Cryptocurrencies are under pressure this week, particularly altcoins, as Bitcoin (BTC) continues to decline from its recent peak below $100,000. The sharpest declines were noted in XRP, Polkadot, Litecoin, Aptos, and Cardano, all reporting losses between 15% to 18% in just one day. The CoinDesk 20, which monitors the leading 20 cryptocurrencies by market cap, mirrored this bearish trend with a substantial drop.
Bitcoin, in contrast, remains comparatively stable at around $95,000, reflecting only a 3% decrease over the same timeframe. This ongoing market correction follows a recent bullish rally linked to Donald Trump's recent electoral victory, which had led to altcoins doubling in value and Bitcoin surging past the $100,000 milestone for the first time.
Many are watching the upcoming Consumer Price Index (CPI) data, which could influence market sentiment. "The market anticipates a slight uptick in inflation; however, figures exceeding expectations could trigger further corrections across the financial landscape," noted Lienkha.
Overall, while Bitcoin showcases resilience, the market's focus has shifted significantly away from altcoins as their volatility increases.
