Bitcoin, Ethereum Lead Crypto Market Decline as Most Coins Slide

Cryptocurrency prices took a hit on Friday, with most major coins trading in the red. Bitcoin slipped 1.73% over the past 24 hours, while Ethereum saw a sharper decline of 2.63%, according to data from Pluang.

The broad-based sell-off erased some of the gains from earlier in the week. Traders attributed the pullback to profit-taking after a recent rally and renewed caution around global regulatory developments.

Altcoins Follow the Downtrend

Ethereum's decline pulled down the broader altcoin market. Solana dropped 3.1%, Cardano fell 2.8%, and XRP lost 1.9% during the same period. Smaller-cap coins saw even steeper losses, with some tokens declining over 5%.

Dogecoin and Shiba Inu, often volatile meme coins, also slid. Dogecoin was down 1.5%, while Shiba Inu shed 2.2%. The selling pressure appeared broad-based rather than concentrated in any single asset.

Market Sentiment Turns Cautious

Analysts pointed to several factors behind the downturn. Profit-taking after a strong mid-week rally was a likely trigger. Bitcoin had briefly touched $68,000 on Wednesday before retreating.

Regulatory uncertainty also weighed on sentiment. Reports of a potential crackdown on crypto platforms in parts of Asia resurfaced, though no official announcements have been made. Traders are also eyeing upcoming U.S. Federal Reserve commentary on interest rates, which could impact risk assets.

Total crypto market capitalisation fell to roughly $2.4 trillion, down from $2.5 trillion a day earlier. Trading volumes remained elevated, suggesting active selling rather than a lack of interest.

Bitcoin Dominance Inches Up

Bitcoin's dominance—its share of the total crypto market—rose slightly to 48.2%, indicating that capital was rotating out of altcoins into the largest cryptocurrency. This pattern is common during market pullbacks, as investors seek relative safety in Bitcoin.

Ethereum's dominance dipped to 17.1%, reflecting its steeper decline. The Ethereum network has faced congestion issues this week, which may have added downward pressure on the token.

Stablecoins like USDT and USDC held steady, with no unusual inflows or outflows detected. This suggests the sell-off was driven by spot market selling rather than a panic move into cash equivalents.

What to Watch Next

Markets will closely monitor weekend trading volumes, which are typically lower and can amplify price swings. Any significant news on regulatory actions or macroeconomic data could trigger further moves.

Bitcoin's ability to hold above $65,000 will be a key test. A break below that level could invite more selling, while a recovery would signal that the pullback is a temporary correction in a broader uptrend.