The global cryptocurrency market has faced a sharp correction, resulting in a more than 30% drop in market capitalization due to macroeconomic uncertainty and tariff pressures.
Altcoin Declines
Layer 1 tokens, meme coins, and DeFi assets have suffered steep declines in the last few weeks. Ethereum, Solana, and Avalanche have significantly dropped from their Q1 highs, with many low-cap tokens losing over 40% as liquidity dries up.
Bitcoin as a Safe Haven
Bitcoin, often dubbed digital gold, has displayed relative strength during the downturn, hovering within 5% of the $70,000 level. It is seen as a safe-haven asset, underscoring its dominance in the market.
Market Outlook
Market watchers are closely observing the macroeconomic landscape, including potential further tariffs and interest rate changes. While long-term expectations for crypto infrastructure remain positive, short-term uncertainty may continue to suppress altcoin performance.
The cryptocurrency market is navigating a challenging phase, yet many investors are hopeful for recovery, focusing on Bitcoin as a stable asset amid uncertainty.
