Crypto Profit-Taking Begins in SOL, XRP, DOGE Despite Bullish Macro Outlook for Bitcoin (BTC) and Ether (ETH)

According to @rovercrc, while Bitcoin (BTC) holds firm around $107,000, signs of market fatigue are emerging with profit-taking seen in major altcoins. Cryptocurrencies such as XRP (XRP), Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) have experienced losses between 3-4%, with SOL retesting the $140 support level. Ether (ETH) is also showing signs of cooling after briefly exceeding $2,800. This short-term pullback contrasts with a broadly constructive macro environment. Analysts from firms like HashKey Group and Kraken cite improving U.S.-China trade relations, softer inflation data, and significant institutional inflows via spot ETFs as bullish long-term signals. Eugene Cheung of OSL highlighted Hong Kong's new, crypto-friendly regulations as another positive driver. Furthermore, Jeff Mei of BTSE suggested that conditions are favorable for Bitcoin to potentially surpass its previous all-time high, driven by easing geopolitical tensions and the prospect of Federal Reserve rate cuts.
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The cryptocurrency market is exhibiting a complex dynamic, with major assets like Bitcoin (BTC) holding strong while several altcoins experience significant profit-taking. As of recent trading, the BTCUSDT pair hovered around $107,662, showing resilience after reaching a 24-hour high of $108,746. Despite this stability at the top, a wave of selling pressure has hit prominent altcoins, signaling a potential short-term cooling period even as broader macroeconomic indicators turn increasingly favorable. This divergence suggests traders are rebalancing portfolios, securing gains in high-flying altcoins while potentially consolidating capital in Bitcoin ahead of its next major move.
Altcoins Under Pressure as Traders Lock in Profits
The profit-taking has been most evident among crypto majors that have seen substantial gains recently. Solana (SOL) experienced a notable slide, with the SOLUSDT pair dropping 0.68% to trade around $150.19. It tested a 24-hour low of $149.70, indicating that the $150 mark is a critical psychological and technical support level to watch. Similarly, XRP saw a pullback, with the XRPUSDT pair declining by approximately 0.48% to $2.18, after reaching a high of $2.21. This move suggests traders are taking profits near the $2.20 resistance zone. Other major assets, including BNB, which traded at $654, and Cardano (ADA) at $0.5641, also showed minor losses, reflecting a widespread, albeit cautious, risk-off sentiment in the altcoin market. Ether (ETH), which had previously outpaced Bitcoin, also showed signs of exhaustion. The ETHUSDT pair was trading at $2,464, down from its 24-hour peak of $2,522. The ETH/BTC pair, a key indicator of altcoin market strength, gained 1.06% to 0.02282, suggesting some relative strength, but the USD pair's consolidation points to a pause in its upward momentum.
Macroeconomic Tailwinds and Institutional Confidence
Despite the short-term altcoin correction, the underlying market sentiment remains robust, buoyed by positive macroeconomic developments and growing institutional interest. According to Jeffrey Ding, Chief Analyst at HashKey Group, progress in U.S.-China trade relations and softer U.S. CPI data have created a more stable economic outlook, which is beneficial for risk assets like cryptocurrencies. This sentiment was echoed by Jeff Mei, chief operating officer at BTSE, who noted that easing inflation fears and the potential for federal interest rate cuts could propel markets higher. He stated that conditions are ripe for Bitcoin to challenge its previous all-time high of about $112,000, especially with geopolitical tensions appearing to de-escalate. The S&P 500 reaching new highs this week further underscores a broad risk-on appetite that could spill over more forcefully into digital assets.
The institutional angle continues to be a powerful narrative driving the market forward. Thomas Perfumo, an economist at Kraken, highlighted that the crypto market is evolving into a macro hedge against real yield volatility and fiscal concerns. In a statement, he noted a "virtuous cycle" where the adoption of structural products like spot ETFs is absorbing supply faster than anticipated. This institutional bid is supported by a more favorable regulatory environment in key jurisdictions. Eugene Cheung, chief commercial officer of OSL, pointed to Hong Kong's new "Policy Statement 2.0" as a major driver of optimism. This framework aims to create clear licensing pathways for stablecoins and the tokenization of real-world assets (RWAs), a move that contrasts with the regulatory uncertainty in other parts of the world and could position Hong Kong as a leading digital asset hub, attracting further institutional capital into the ecosystem.
Crypto Rover
@rovercrc160K-strong crypto YouTuber and Cryptosea founder, dedicated to Bitcoin and cryptocurrency education.