Altcoins including Ethereum and Dogecoin retraced in the early hours of Tuesday, paring the gains seen following a recent Trump-driven rally in the cryptocurrency markets. The pullback was led by Hedera and Hyperliquid among the top 20 cryptocurrencies by market capitalization, with Hedera dropping 5.2% and Hyperliquid declining 5.1%, according to CoinGecko. Ethereum saw a 2.6% drop, Chainlink fell by 3.3%, and Dogecoin decreased by 1.5% over the past 24 hours. Stellar and Cardano also registered losses, dipping 4.1% and 2.8%, respectively. This market correction emerges just a week after XRP achieved an all-time high exceeding $3.41, a rally attributed by analysts to fresh institutional interest spurred by Trump’s favorable crypto policy.
The current decline is being characterized by analysts as a “healthy correction” following the sharp rally that markets recently experienced. According to market analysts, such corrections are often needed to solidify the market’s foundation for sustained future gains. Technical signals such as profit-taking and overbought conditions are prompting a temporary pause in the euphoric market sentiments. These corrections are often viewed as an opportunity to reassess market positioning and risk management strategies. As Ethereum experiences declining selling pressure and XRP establishes a “Golden Cross” pattern, these are seen as bullish technical indicators that could underpin future rallies.
Bitcoin demonstrates resilience, rising slightly by 1% to surpass $119,000 after hitting a record high of $123,000 last Monday, demonstrating the evolving nature of market dynamics. This slight uptick was viewed by market observers as a natural interlude following the enactment of the GENIUS Act, America’s first substantial legislative move on stablecoins that provides a regulatory blueprint. Current market behavior is more of a pause for the markets to digest recent gains rather than indicating a structural downturn.
Adding to the market pressures, Federal Reserve Chair Jerome Powell’s upcoming address is capturing attention amidst rising expectations for future monetary policy directions. The Fed’s stance, especially around rate adjustments, could exert influence on both crypto and traditional asset markets. Markets anticipate Powell’s tone to serve as a pivotal influence, particularly with appraisals showing a lean towards a rate cut in September. Speculations regarding Trump’s potential moves concerning Fed leadership may also be playing into current market psychology.
Meanwhile, the persistent discussion surrounding potential US tariffs and the impending deadline is exerting subtle pressure across the markets. Speculation mounts on whether major tariffs will be imposed, postponed, or adjusted yet again. This uncertainty inevitably stretches into global markets, creating a complex interplay of potential risk factors against a backdrop of ongoing institutional adoption in the cryptocurrency space.
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Read More: Altcoins Retreat Amid Market Correction and Fed Speculations
