Altcoins Extend Slide as Traders Brace for Fed, Payrolls, and Tariff Risks
Altcoins posted another day of sharp losses Tuesday, continuing a multi-week decline as traders turned defensive ahead of key macro events. In contrast, bitcoin and ether held relatively steady, underscoring a growing divergence across the crypto complex.
XRP, Solana (SOL), and Cardano (ADA) all shed more than 3% over the past 24 hours, while Dogecoin (DOGE), Avalanche (AVAX), and Sui (SUI) dropped over 5%, according to CoinDesk data. On a weekly basis, XRP and SOL are down 13%, with DOGE losing nearly 18%.
Bitcoin hovered near $117,312 with minimal movement, while ether saw modest fluctuations but remained stable — reflecting broader investor caution outside of the altcoin space.
The sell-off appears tied to an ongoing unwind in leveraged altcoin positions, initially built during the rally earlier this month. That risk-off behavior has been amplified by a packed macro calendar.
Markets are awaiting the U.S. Federal Reserve’s interest rate decision on Wednesday, where rates are expected to remain unchanged despite growing political pressure from President Donald Trump to cut. Traders are also watching Friday’s nonfarm payrolls report and upcoming tariff deadlines, both of which could introduce additional volatility.
U.S. equities lost early momentum, with both the Nasdaq and S&P 500 slipping into the red late in Tuesday’s session.
