Altcoin market sees sharp drawdown as selling pressure accelerates

The altcoin market came under heavy pressure in the past 24 hours, with broad losses across major tokens and a sharp contraction in market capitalization excluding Bitcoin and stablecoins.

According to market data, the total crypto market cap excluding BTC fell to around $1.2 trillion, marking a daily decline of roughly $50 billion, or just over 4%, based on the latest daily candle. 

Trading volume remained elevated near $147 billion, suggesting the sell-off was driven by active risk reduction rather than thin liquidity.

Major altcoins post steep weekly losses

Across the large-cap altcoin segment, losses were widespread and extended beyond short-term volatility.

Ethereum slipped below $3,000, down roughly 7% on the day and nearly 7% over the past week, while Solana fell to around $127, shedding more than 11% on a seven-day basis. 

Source: CoinMarketCap

XRP also underperformed, declining over 11% in the past week, while Dogecoin and Cardano recorded similar weekly losses of 14% or more.

Even relatively defensive large caps failed to hold ground. BNB fell over 5% on the week, while Tron declined more modestly but still posted a negative daily close. 

Monero saw one of the sharpest moves, with weekly losses exceeding 25%, underscoring the breadth of the downturn.

Altcoin market structure weakens below key levels

The total market cap excluding Bitcoin chart shows a clear loss of structure. After failing to reclaim the $1.3 trillion area earlier this month, the market rolled over and continued printing lower highs, with the latest drop pushing prices toward levels last seen in mid-2024.

Source: TradingView

Momentum indicators reflect growing downside pressure. The daily RSI has slipped below 40, pointing to weakening buyer strength. At the same time, volume spikes during red candles suggest distribution rather than consolidation.

This breakdown highlights that capital is exiting altcoins faster than Bitcoin. This shows a classic risk-off rotation where traders reduce exposure to higher-beta assets first.

Bitcoin weakness spills into altcoins

Although Bitcoin was excluded from the total market cap calculation, its drop below $90,000 appears to have accelerated losses across altcoins. 

Historically, sharp Bitcoin declines tend to amplify downside volatility in the broader market, particularly when leverage is flushed out and confidence weakens.

With no immediate recovery in Bitcoin and liquidity conditions tightening, altcoins remain vulnerable to further downside in the short term.

Final Thoughts

• The altcoin market lost roughly $50 billion in a single day, with most large-cap tokens posting double-digit weekly losses.
• Until broader market confidence returns, altcoins are likely to remain under pressure relative to Bitcoin.