Cardano and Dogecoin Bleed Out as Bitcoin Faces $100K Retrace—Crypto Carnage Continues
Crypto markets are reeling as two major altcoins lead the plunge—dragging Bitcoin's bullish momentum into uncertainty.
Red Across the Board
Cardano and Dogecoin are posting steep losses, shaking trader confidence just as Bitcoin flirted with six figures. The pullback fear isn't just speculation; it's rooted in tangible sell-offs and leveraged liquidations.
Bitcoin’s Precarious Perch
Traders eye the $100K level like a cliff edge—breach it, and sentiment could sour fast. The king crypto’s dominance wavers as altcoins show weakness, suggesting a broader market cool-off.
Same volatility, bigger numbers—Wall Street’s playing catch-up, but crypto’s still writing the playbook on how to lose sleep and money faster.
Sour mood sweeps the market
The mood in the crypto market has soured quickly after a string of record highs, with traders forced to reckon with the macro backdrop once again. U.S. inflation data surprised to the upside, cooling expectations for rapid rate cuts and prompting profit-taking across short-term accounts.
“Bitcoin remains in minor correction mode since posting its latest record high in the previous week,” said Joel Kruger, market strategist at LMAX Group, said in an email.
“Sentiment has been mostly steered lower by hotter-than-expected U.S. inflation data, which dampened expectations for near-term rate cuts from the Fed.”
The retracement hasn’t spared ether, which mirrored bitcoin’s drop as Leveraged longs unwound. Still, flows into ETH products remain robust, giving some traders confidence that the move is temporary.
“Ethereum has mirrored Bitcoin’s retreat, as traders book profits following recent strong gains. Still, broader institutional interest remains resilient - evidenced by robust ETF flows and growing treasury allocations to ETH - which keeps the medium-term outlook constructive,” Kruger added.
Institutional flows continue to underpin sentiment even as spot markets wobble. Hedge funds and asset managers continue to raise large allocations, indicative of the conviction behind the asset class.
Meanwhile, leverage has piled up across derivatives markets, intensifying the risk of sharper moves in either direction.
“Record levels of open interest in futures markets underscore how much leverage has built up across crypto,” said Ryan Lee, chief analyst at Bitget, in a Telegram message.
“That leverage cuts both ways: it can accelerate gains if momentum continues, but it also amplifies volatility, leaving both BTC and ETH vulnerable to sharper swings on any shift in sentiment,” Lee said.
Attention now shifts to Jackson Hole, where the Fed Chair is set to outline the central bank’s policy stance heading into the fall. The address could send ripples across equities, forex, and digital assets.
