Profit-taking and geopolitical risk are accelerating flows out of altcoins, rotating toward Bitcoin’s lower correlation and perceived defensive traits
Major cryptocurrencies dropped sharply on Thursday as traders moved to lock in profits, dragging altcoin prices lower across the board.
Bitcoin, meanwhile, held steady near the $93,000 mark, showing a level of resilience that increasingly mirrors traditional store-of-value assets like gold.
According to Bitget Chief Operating Officer Vugar Usi Zade, recent macro conditions such as a declining U.S. dollar index and increased volatility in equity markets are encouraging investors to move toward more stable assets, with Bitcoin emerging as a key beneficiary.
“Its reduced correlation with equities and safe-haven narrative position it as a diversification tool, though short-term challenges like weak investment signals require sustained macro catalysts,” Zade told CoinDesk in an email.
DOGE, XRP, SOL, and other altcoins extend losses as traders lock in profits after rally
The sell-off followed a week of steady gains across the digital asset space, prompting many investors to take profits.
Memecoins led the decline, with Dogecoin (DOGE) falling more than 5%, followed by a similar drop in Shiba Inu (SHIB).
Ethereum (ETH) lost over 3%, while Solana (SOL) and BNB registered declines above 3% and 2%, respectively. XRP also tumbled more than 5%, deepening the broader pullback across major altcoins.
The broad-based CoinDesk 20 Index, which tracks the largest and most liquid cryptocurrencies, slid more than 3% on the day.
According to CoinMarketCap, the total crypto market capitalization shrank by 1.5%, as profit-taking weighed on sentiment following earlier gains.
Geopolitical tensions boost Bitcoin’s macro hedge appeal
Bitcoin’s resilience is emerging at a time of heightened geopolitical and economic uncertainty.
Over the past week, the cryptocurrency has traded more like gold, with both assets holding firm even as bond yields and U.S. equities slipped amid escalating trade tensions.
This shift comes as President Donald Trump stated earlier this week that he would not remove Federal Reserve Chair Jerome Powell. This signal helped cool concerns around central bank disruption.
Singapore-based trading firm QCP Capital noted that this reassurance prompted a modest pullback in long-end bond yields, which had become a key source of investor stress.
However, QCP cautioned that the broader outlook remains complex. “Trade frictions, geopolitical jitters, and regulatory opacity continue to cast long shadows,” the firm said in a client update.
