Solana Sinks 14% While XRP, Dogecoin Slide 8% Amid Intensifying Crypto Sell-Off

Crypto Market Sell-Off Deepens as Bitcoin Dips Below $92K, Solana Leads Losses

The cryptocurrency market extended its decline on Tuesday, with major assets tumbling amid persistent bearish sentiment and a lack of bullish momentum.

Solana (SOL) led the downturn, plunging 14% in the past 24 hours, bringing its weekly losses to over 20%. Dogecoin (DOGE), XRP, and ether (ETH) also dropped more than 8%. Bitcoin (BTC) slipped below $92,000 for the first time since late November, raising concerns about a potential breakdown from its long-standing consolidation range between $90,000 and $110,000.

The broader crypto market took a hit, with total market capitalization declining by 6.6%, while the CoinDesk 20 Index (CD20) – which tracks the largest and most liquid tokens – fell more than 7%.

Despite the sell-off, some analysts suggest that macroeconomic factors will be key to the market’s next move.

“Bitcoin, Ethereum, and Solana shouldn’t be this far off from their all-time highs,” said Jeff Mei, COO at BTSE. “Concerns about inflation and the Fed’s pause on rate cuts have weighed on sentiment, but that could shift if weak economic data forces officials to reconsider their stance.”

SignalPlus head of insights Augustine Fan shared a similar outlook, noting that the market is in a phase where economic slowdown fears are driving sentiment. “Stocks and bonds are moving in sync again, approaching their highest correlation levels in a year,” he said.

Fan also pointed out that weak economic data could provide a tailwind for Bitcoin. “We’re seeing the return of a ‘bad news is good news’ scenario—if markets anticipate Fed intervention, Bitcoin and gold could benefit.”

Recent U.S. Consumer Price Index (CPI) data showed a higher-than-expected 0.5% rise in January, compared to the forecasted 0.3% increase. This inflation surprise has led investors to adopt a more cautious approach, shifting toward cash and risk-off assets until clearer economic signals emerge.

With inflation remaining a key concern, Bitcoin’s role as a hedge against rising prices could become a defining factor in the market’s next move.