
The Bitcoin price tanked below $90,000, creating shockwaves across the cryptocurrency markets, triggering massive liquidations and profit-taking. The global market capitalisation has dropped from levels close to $4 trillion to levels close to $3 trillion, while the volume surged close to $230 billion. Amid the rising bearish influence over the markets, the top altcoins, Ethereum, XRP & Solana, are displaying massive strength.
This suggests that liquidity is rotating from Bitcoin to other top altcoins, as market participants appear to be more focused on the prices of ETH, XRP & SOL.
As Bitcoin’s sharp drop rattled the market, the immediate question was how major altcoins would react. While the broader sentiment weakened, Ethereum, Solana and XRP each showed a noticeably different price response, revealing where traders are rotating—and where resilience may be emerging.
The latest market shake-up shows a clear divergence between Bitcoin and major altcoins, and several factors are driving this split. Bitcoin faced intense selling pressure as large holders trimmed exposure and derivatives markets saw rapid unwinding, pushing the asset below key psychological levels. But altcoins reacted differently because their liquidity, narratives and investor profiles vary widely.
Some traders rotated into selectively stronger altcoins like XRP to hedge volatility, while others reduced positions in high-beta assets such as Solana. Meanwhile, Ethereum’s muted reaction reflects its deeper liquidity and ETF-related flows, which tend to buffer sharp swings. Overall, the divergence stems from a mix of profit-taking, uneven risk appetite and narrative-driven positioning—signaling that traders are no longer treating the entire market as a single correlated block.
Despite the turbulence triggered by Bitcoin’s drop below $90,000, the altcoin response shows that market behavior is becoming more selective. Ethereum, Solana and XRP demonstrated varying degrees of resilience, hinting that traders are weighing individual fundamentals rather than reacting in lockstep with Bitcoin. As the market stabilizes, the next major trend may come from altcoins that hold their structure and maintain stronger narratives. For now, all eyes remain on Bitcoin’s ability to reclaim lost levels—a move that will ultimately determine whether this divergence widens or snaps back into sync.
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