Major altcoins like XRP, Solana, and Dogecoin are experiencing significant corrections, with declines of 5% to 7% in a single day. This downturn comes as Bitcoin remains stable, and is largely attributed to a decrease in risk appetite among investors.
According to analysts from Bitfinex, the altcoin market is at a "critical juncture" due to excessive leverage. Data from CoinGlass shows a high number of liquidations on leveraged long positions over the past five days, meaning traders betting on price increases are being forced to sell.
The market is also being affected by broader economic factors, including the recent strength of the U.S. dollar and rising real yields. This is causing what trading firm QCP calls "late-cycle behavior," where even positive crypto news fails to move prices significantly. With these pressures at play, the market may struggle to find new upward momentum in the short term.
August 2025, Cryptoniteuae