DOGE Tanks 5%, Solana and XRP Slip — But Bitcoin’s ETF Inflows Soar

Major cryptocurrencies faced a sharp pullback on Thursday, with several top tokens dropping as much as 5%, as profit-taking swept across digital asset markets following a steady rally earlier in the week.

Large cap assets such as Memecoin Dogecoin (DOGE) also proved to be at the forefront of the decline with the cryptocurrency witnessing a drop of more than 5% in the last 24 hours. The Bitcoin market stayed above $93,000 while other major tokens lost significant value.

Solana’s (SOL) dropped more than 2%, while XRP and BNB came down more than 2%, and Ethereum (ETH) declined just 1.5%. 

Bitcoin Gains Safe-Haven Status Amid Volatility

The value of the total cryptocurrency market cap reduced by round about 2.5%. It followed on bull run into U.S.-based spot ETFs, which took in over $916 million in net inflows on Wednesday, a sign of increased institutional interest.

According to Vugar Usi Zade, COO at crypto exchange Bitget, the inflows are driven by a falling U.S. dollar index as well as Bitcoin’s growing safe haven appeal during equity market volatility. Bitcoin’s increasing institutional adoption was well represented in the massive ETF inflows.

However, Zade said Bitcoin’s lower correlation with equities has helped drive its classification as a viable portfolio diversification medium, although he noted the need to sustain macro catalysts in order to support an upward trend amid short-term challenges like weak investment signals.

Geopolitical Tensions Add Pressure to Markets

Recently, Bitcoin’s reputation as a safe haven asset has gained popularity, similar to gold. It is somewhat fiscally resilient with market volatility ignited by surging bond yields, an escalation in U.S. equity markets and rising trade tensions.

Geopolitical tension creates confusion about how economies around the world will perform. Former President Donald Trump, who is leading the Republican primary polls, pledged earlier this week that he has no intention of replacing Federal Reserve Chairman Jerome Powell. 

In addition, he also hinted a possible trade agreement with China to reduce the existing tariffs, including terms as high as 245%. Traders are still reluctant, even after reassurances.

Crypto Traders Monitor ETF and Fed Signals

Multiple global threats still exist but investors have gained relief by recognizing the chairmanship of Powell will stay for now. Trump tells people he will not remove Powell as head of the Federal Reserve right now. The assurance from US President Trump about Federal Reserve Chair Powell has triggered a minor slowdown in long-term bond rates according to QCP Capital.

The broader outlook, however, is anything but simple. Trade frictions, geopolitical jitters, and regulatory opacity continue to cast long shadows, the firm added.

With uncertainty over the economic signals and geopolitical uncertainties continuing in the crypto market, traders and analysts alike are following the flow of institutions, the activity of the ETF, as well as the monetary policy signals that could dictate the next leg up for digital assets.

Conclusion 

Bitcoin shows sustained strength even with profit selling and market uncertainty due to its institutional acceptance through ETFs. Although the decline in DOGE value led the market drop, traders remain focused on how global events and monetary policy impacts, combined with ETF buying activity, will direct crypto market trends.

Follow us on Twitter and LinkedIn, and join our Telegram channel to be instantly informed about breaking news!

FAQs

Why did major tokens drop? 

 Tokens fell up to 5% as traders took profits after a recent rally, with Dogecoin (DOGE) leading the losses.

What is driving Bitcoin’s safe-haven appeal?

 Bitcoin’s appeal is growing due to a declining U.S. dollar index and its role as a diversification tool amid market volatility.

How did geopolitical tensions impact the market?

 Geopolitical issues, like trade frictions, created market uncertainty, but Trump’s comments on Powell helped ease bond yield concerns.

What factors are shaping Bitcoin’s outlook?

 Bitcoin’s outlook is shaped by institutional interest, ETF inflows, and macroeconomic factors like trade relations and monetary policies.

Glossary Of Key Terms 

Memecoin: Cryptocurrencies inspired by memes, often highly volatile (e.g., Dogecoin).

BNB Chain (BNB): A blockchain by Binance, focused on DeFi and fast transactions.

Safe Haven Asset: An asset that retains value in times of market instability (e.g., Bitcoin, gold).

Macro Catalysts: Economic or geopolitical events that influence markets.

Trade Frictions: Economic tensions, often caused by tariffs or trade barriers.

Regulatory Opacity: Lack of clarity in government regulations, affecting investment confidence.

Reference 

sosovalue.com

qcpgroup.com

Read More: DOGE Tanks 5%, Solana and XRP Slip — But Bitcoin’s ETF Inflows Soar">DOGE Tanks 5%, Solana and XRP Slip — But Bitcoin’s ETF Inflows Soar