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Why Crypto Market is Down Today? Altcoins Crash After Massive Profit-Taking

Published by
Debashree Patra

After a strong week-long surge, the crypto market has entered a cooling phase. Major altcoins like Dogecoin, Cardano, and Solana have dropped over 5% in the past 24 hours as investors chose to lock in recent gains. The broader sentiment remains cautious as traders await fresh catalysts. 

Profit-Taking Hits Major Altcoins

The latest dip in prices comes after a macro-driven rally last week that pushed Bitcoin to nearly $104,000 and Ethereum to $2,700. But both hit resistance at key levels, prompting traders to step back. Solana, Cardano, and Dogecoin saw notable declines, following the lead of large-cap assets as momentum slowed. 

According to FxPro analyst Alex Kuptsikevich, Bitcoin is struggling to break past its December-January highs, while Ethereum is showing signs of a possible correction toward $2,400 after gaining 55% in just a week.

Overheated Market?

Sentiment indicators are now flashing caution. The Crypto Fear & Greed Index has dropped to 71 from 74, a level that typically signals excessive bullishness and potential overbought conditions. Analysts suggest the market may need to cool down before making the next move, especially after last week’s bullish run was largely driven by external events. 

The rally had been sparked by a combination of lower-than-expected U.S. inflation data, strong earnings from China’s tech sector, and a breakthrough in U.S.–China trade relations. While those factors gave markets a boost, crypto prices have now begun to stabilize as traders reassess risk. 

Institutional Demand Remains Strong

Despite the pullback, Bitcoin whales and sharks are still accumulating. According to Santiment, Bitcoin’s largest holders, wallets holding between 10 and 10,000 BTC, have accumulated over 83,000 BTC in the past month, signaling strong confidence in further upside. In contrast, small retail investors holding less than 0.1 BTC have offloaded 387 BTC, likely locking in profits amid fears of a market top.

Coinbase S&P 500 Listing Could Be Next Boost

Looking ahead, all eyes are on Coinbase’s inclusion in the S&P 500 on May 19. Analysts at QCP Capital believe the move could act as a short-term catalyst for the crypto sector, potentially attracting over $9 billion in passive fund flows.

For now, though, the market is catching its breath.

FAQs

Is it a good time to invest in crypto now?

The market is cooling; caution is advised as indicators show overbought conditions and potential short-term correction.

Are institutional investors still buying Bitcoin?

Yes, whales added 83K BTC in a month, showing strong confidence despite recent market pullback.

Debashree Patra

Fun-loving and cheerful, a passionate blockchain and crypto writer who knows no boundary…connect if you share the same passion. With 10+ years of writing experience, I am a Crypto Journalist by chance, exploring, and learning all the dynamics of the sci-fi action-filled crypto world. Currently, focusing on cryptocurrency news and price data. With a passion for research and challenging my capabilities, I am slowly getting into the crypto arena to bring new insights every day.

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