Bitcoin’s decline below $85,000 has triggered a broad market downturn, with major altcoins showing significant losses. Data indicates this is a widespread de-risking event rather than capital rotating into alternative cryptocurrencies. The total altcoin market capitalization has continued to drift lower, reflecting sustained outflows as risk appetite cools across the sector.
Bitcoin’s slide below $85,000 has triggered broad weakness across major altcoins. Market data shows losses extending beyond BTC into the broader digital asset market.
Among the top ten crypto assets excluding Bitcoin and stablecoins, losses were widespread. Ethereum traded around $2,818, down 6.38% on the day, while BNB slipped 4.06% to roughly $865.
XRP fell 5.79% to $1.80, extending its weekly decline. Solana posted one of the sharpest pullbacks, down 6.26% on the day and over 8.5% across seven days.
Memecoins and high-beta assets also struggled significantly. Dogecoin dropped 6.69% in 24 hours, while Cardano fell 7.17%.
Volume data suggests the moves were not isolated to illiquid tokens. Ethereum recorded more than $36 billion in 24-hour trading volume, while Solana exceeded $6 billion.
Total altcoin market capitalization declined to around $1.18 trillion. This continues a downtrend that has been in place since early December.
The contraction coincides with Bitcoin’s failure to reclaim higher resistance levels. The data does not show meaningful divergence between large-cap and mid-cap altcoins.
Despite Bitcoin’s pullback, there is limited evidence of a classic rotation into altcoins. The absence of relative strength among major tokens suggests traders are reducing exposure.
This dynamic aligns with recent derivatives and liquidation data showing elevated leverage being unwound. As leverage resets, spot markets have followed with subdued demand.
Unless Bitcoin regains traction above recent breakdown levels, altcoins are likely to remain sensitive. A shift in altcoin momentum likely depends on Bitcoin reclaiming key levels rather than standalone strength.
