Crypto Market Extends Losses as Bitcoin Dips Below $92K, Solana Sinks 14%
The cryptocurrency market experienced another wave of selling pressure on Tuesday, deepening losses across major digital assets.
Solana (SOL) led the decline, plunging 14% in the past 24 hours and extending its weekly losses to over 20%. Dogecoin (DOGE), XRP, and Ethereum (ETH) each dropped more than 8%, while Bitcoin (BTC) slipped below $92,000 for the first time since November, putting its months-long trading range of $90,000 to $110,000 at risk.
The total crypto market capitalization fell 6.6%, and the CoinDesk 20 Index (CD20), which tracks a broad range of top cryptocurrencies, lost more than 7%.
Despite the downturn, some traders believe the market reaction is overblown and that macroeconomic factors will be key to future price direction.
“Bitcoin, Ethereum, and Solana are trading far below where they should be,” said Jeff Mei, COO of crypto exchange BTSE. “Concerns about inflation and delays in Federal Reserve rate cuts have put pressure on risk assets, but weak economic data from last week could shift the Fed’s stance, which would be bullish for crypto.”
Augustine Fan, head of insights at SignalPlus, shared a similar outlook: “We’re seeing the ‘economic slowdown’ narrative dominate markets again, with stocks and bonds trading more in sync. If this continues, Bitcoin could benefit as a hedge against uncertainty.”
Fan also pointed out that poor economic data may actually fuel expectations of Fed intervention. “Right now, bad news is good news for markets. If economic conditions worsen, the Fed may be forced to act, potentially driving renewed interest in Bitcoin and gold.”
Earlier this month, inflation data showed that the U.S. Consumer Price Index (CPI) climbed 0.5% in January, higher than the anticipated 0.3% increase. The hotter-than-expected inflation print has led many investors to take a defensive stance, reducing exposure to risk assets while waiting for clearer signals from policymakers.
As traders monitor macroeconomic developments, Bitcoin’s role as an inflation hedge and store of value could become increasingly relevant in the weeks ahead.
