Dogecoin Takes the Brunt of Losses as Major Cryptos BTC, ETH, and XRP Experience Profit-Taking Slump.

Bitcoin Maintains Safe-Haven Status as Market Faces Profit-Taking and Geopolitical Tensions

Bitcoin is emerging as a stronger safe-haven asset amid increasing global uncertainty, as profit-taking weighs on other major cryptocurrencies. On Thursday, the broader crypto market experienced a pullback, with assets like Dogecoin (DOGE), XRP, and Solana (SOL) posting notable losses. However, Bitcoin (BTC) stood out with a more resilient performance, holding steady around the $93,000 level despite a wider market correction.

Profit-taking hit several major tokens, with DOGE leading the way in losses, down by over 5%, while XRP and SOL saw more modest declines of around 2%. Ethereum (ETH) followed suit with a 1.5% drop. The market’s overall capitalization dropped by 2.5%, reflecting the profit-taking trend, while the CoinDesk 20 index, which tracks the top 20 cryptocurrencies, fell by over 3%.

Meanwhile, Bitcoin’s role as a safe-haven asset gained further validation, as U.S.-listed Bitcoin exchange-traded funds (ETFs) recorded more than $900 million in inflows on Wednesday. This surge in investor demand comes amid growing concerns over global economic instability, which has prompted institutional investors to seek Bitcoin as a hedge against uncertainty.

Bitcoin’s safe-haven narrative is reinforced by its reduced correlation with traditional equities and bonds, according to analysts. As the U.S. dollar index weakens and equity markets experience volatility due to ongoing trade tensions with China, Bitcoin’s appeal as an alternative investment continues to grow.

Vugar Usi Zade, COO at Bitget, commented, “Bitcoin’s safe-haven status has become increasingly evident as it continues to show resilience during periods of market instability. Institutional inflows are a strong indicator that Bitcoin is being viewed as a stable store of value, even amid global trade and geopolitical risks.”

Despite the positive sentiment around Bitcoin, short-term challenges persist. U.S. President Donald Trump’s statements on trade negotiations with China, including his hint at tariff reductions, have yet to fully stabilize market conditions. The uncertainty around the direction of U.S. fiscal policy, along with ongoing trade issues, continues to add layers of complexity to the market outlook.

QCP Capital, a leading crypto trading firm, highlighted that while some risk factors have eased, the overall market remains cautious. “The market’s reaction to tariff discussions and geopolitical risks is still evolving, and the uncertainty around these factors keeps investors on edge,” they stated. “However, Bitcoin’s ability to decouple from traditional assets and continue its upward trajectory is a sign of its growing appeal as a long-term store of value.”

With the situation in flux, traders are closely watching the developments, as any significant changes in trade relations or economic policy could trigger further volatility across the crypto and traditional markets.