Crypto Market Sinks: Cardano, Dogecoin Lead Declines on Growing Bitcoin Weakness

Crypto Pullback Deepens as Macro Pressures Weigh on Market Sentiment

Bitcoin and ether are retreating from recent record highs as profit-taking, inflation concerns, and elevated leverage spark a broader market cooldown.

Bitcoin (BTC) dropped more than 1.5% to $113,500 over the past 24 hours, reversing gains from last week’s rally above $124,000. Ether (ETH) followed suit, falling 1.8% to $4,159—down over 12% from its peak. The selloff comes amid a renewed focus on macroeconomic risks and growing concern over market structure.

“The drop below Bitcoin’s 50-day moving average suggests a fragile setup, with potential for a deeper move toward $100,000 and the 200-day average,” said FxPro analyst Alex Kuptsikevich.

Crypto’s total market capitalization slipped another 0.4% to $3.87 trillion. Kuptsikevich warned that failure to hold above recent support could open the door to a decline toward $3.6 trillion.

Altcoins Struggle as Sentiment Turns Cautious

Broader crypto assets mirrored the correction:

• XRP fell 4.1% to $2.89
• Dogecoin (DOGE) dropped 2.4% to $0.2185
• Cardano (ADA) led declines, tumbling 6.6%

The mood has shifted sharply after weeks of gains, with investors now reassessing the macro backdrop. Higher-than-expected U.S. inflation data has cooled expectations of imminent rate cuts, fueling a wave of profit-taking across short-term positions.

“Bitcoin has been in a corrective phase since last week’s peak,” said Joel Kruger, market strategist at LMAX Group. “Sticky inflation has tempered hopes of a dovish Fed pivot.”

Leverage Builds as Risks Mount

While price action weakens, leveraged positions across derivatives markets continue to rise, adding fuel to potential volatility.

“Futures markets are showing record open interest,” said Ryan Lee, chief analyst at Bitget. “That much leverage amplifies both sides of the trade—it can accelerate breakouts or exacerbate drawdowns depending on sentiment shifts.”

ETH has mirrored BTC’s losses, though strong inflows into Ethereum ETFs and growing institutional allocations continue to support its longer-term outlook.

“Despite the pullback, institutional flows into ETH remain steady, which reinforces a bullish medium-term view,” Kruger added.

Markets Turn to Jackson Hole for Direction

Attention is now fixed on this week’s Jackson Hole symposium, where Federal Reserve Chair Jerome Powell is expected to clarify the central bank’s policy stance heading into Q4. The speech could be pivotal for risk assets, with potential ripple effects across equities, forex, and crypto.

Despite the near-term weakness, institutional conviction appears intact. Hedge funds and asset managers continue to accumulate, even as retail sentiment turns cautious.