Crypto Market Cools Off After Failed Bitcoin Rally
Bitcoin, Ethereum, and Solana retreat as the crypto market loses momentum. Memecoins face the sharpest correction after explosive gains.
- Bitcoin is down 5.9% since February after failing to break higher.
- Ethereum and Solana have dropped 16.9% and 33.1%, respectively.
- Memecoins, which surged 90.2%, have corrected by 37.4%.
The cryptocurrency market has lost its bullish momentum after Bitcoin ($BTC) failed to push into price discovery. Since February, Bitcoin has dropped 5.9%, struggling to maintain its previous uptrend. Investors had anticipated a breakout, but resistance at key levels halted further gains.
Altcoins Face Heavy Losses
The sell-off has been more severe for major altcoins. Ethereum ($ETH) has dropped 16.9%, while Solana ($SOL) has seen a sharper 33.1% decline. These losses reflect the broader market’s struggle as liquidity tightens and risk appetite weakens.
Memecoins, which saw a massive 90.2% surge in late 2024, have suffered the most. The sector has corrected by 37.4%, showing the volatility of speculative assets. These sharp declines suggest that traders are taking profits after explosive gains.
Market's momentum has stalled after an attempt to push #Bitcoin into price discovery. $BTC is down 5.9% since Feb, while $ETH and $SOL have dropped 16.9% and 33.1%. Memecoins, which surged 90.2% in late 2024, have seen the sharpest correction at -37.4% https://t.co/r3bgR1WY9E pic.twitter.com/SFLnwCFn70
— glassnode (@glassnode) February 20, 2025
What’s Next for the Market?
Despite the recent downturn, analysts remain cautiously optimistic about crypto’s long-term trajectory. Bitcoin’s upcoming halving event and macroeconomic factors could still drive renewed bullish sentiment. However, in the short term, investors should brace for continued volatility as the market seeks stability.
