Dogecoin’s sharp decline leads crypto market losses, Bitcoin and Ethereum take a hit

Jakarta, Pintu News – On Thursday, the cryptocurrency market experienced a significant decline, with Dogecoin (DOGE) leading the losses among major crypto assets. This decline came after a period of steady gains earlier in the week, during which traders opted to take profits.

Bitcoin (BTC) managed to maintain its position in the $93,000 zone, but several other currencies such as Ripple (XRP), Solana (SOL), and BNB Chain (BNB) experienced a decline of more than 2%.

Market Downturn Analysis

The overall market capitalization fell by 2.5%, with the CoinDesk 20 index that tracks the largest tokens by market capitalization falling by more than 3%. Ethereum (ETH) recorded a smaller decline of around 1.5%, showing slightly better resilience compared to other crypto assets.

This drop marks a correction phase after a long rise, where investors chose to realize their profits. Dogecoin’s (DOGE) sizable drop was highlighted, given its high popularity as a memecoin. These losses show the volatility that is still very much possible in the crypto market, despite increased adoption and interest among institutional investors.

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Fund Flows and Bitcoin as a Safe Haven

On Wednesday, funds managed by exchange-traded funds (ETFs) focused on Bitcoin (BTC) recorded inflows of over $916 million. This shows that Bitcoin (BTC) is increasingly seen as a safe haven asset, especially amid stock market volatility.

Vugar Usi Zade, COO at Bitget, stated that this increase in fund flows was driven by the decline in the US dollar index and Bitcoin’s (BTC) position as a hedge asset. Bitcoin’s (BTC) narrative as a hedge asset has strengthened this week, similar to the rise in gold prices, despite the correction in US bond and equity yields amid the ongoing tariff war.

This suggests that Bitcoin (BTC) may continue to play an important role in investment portfolios as a diversification tool, although short-term challenges remain.

Geopolitical Dynamics and Monetary Policy

President Donald Trump recently stated that he has no intention of replacing Federal Reserve Chairman Jerome Powell, and that a deal with China-which currently faces tariffs of up to 245% on some goods-would reduce some of those tariffs.

This statement provided some reassurance in the market, although mixed signals and frequent changes in tone kept traders on their toes. Geopolitical risks, trade frictions, and regulatory uncertainty continue to be factors influencing the market. According to Singapore-based QCP Capital, while there is some clarity regarding the Federal Reserve Chair’s position, the broader outlook remains complex and fraught with uncertainty.

Conclusion

Despite the significant downturn in the crypto market, the dynamics suggest that cryptocurrencies, especially Bitcoin (BTC), still have an important role to play in the global financial ecosystem. Investors and traders are expected to continue monitoring developments to make informed investment decisions amidst continued uncertainty.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Coindesk. Dogecoin Leads Losses Among Majors; BTC, ETH, XRP Slump on Profit-Taking. Accessed on April 24, 2025
• Featured Image: Generated by AI