Every sector of the cryptocurrency market is being hit hard. In the past day, the total crypto market cap has fallen 5.6%, currently at $3.941 trillion. This new downward trend comes just after Bitcoin’s new all-time high set last week, indicating a change in market behavior. Bitcoin, Ethereum and XRP have seen the highest levels of profit-taking since May 2025.
Bitcoin's Dominance and Institutional Shift
Six months prior, in December 2024, the Crypto NPL (Non-Performing Loan) index was above 75, indicating a period of higher risk. Since then, Bitcoin’s dominance has expanded as institutions have turned their attention more heavily toward BTC. As we discussed last month, institutional crypto adoption has been a significant catalyst for the overall market. This move to Bitcoin is a sign that institutional investors are playing it safe. Bitcoin has lost the $120,000 support level and is now trading just above $118,000.
Altcoins Face Pressure Amid Market Downturn
And if Bitcoin is getting a correction, altcoins are feeling even more of the downside wind. Ethereum, XRP and Solana are now all sitting dangerously low under important daily price chart support levels. The Altcoin Season Index is currently 49 out of a possible 100. According to this, there is violent underperformance by altcoins relative to Bitcoin right now. The higher altcoin risk during a bear market makes investors' flight to safety a larger factor. So it’s no wonder they run to the arms of Bitcoin.
Retail Sentiment and Whale Activity
Despite the market’s sizeable drop, retail trader sentiment hasn’t changed much since last Friday. The current overall market sentiment according to the Crypto Greed Index remains at “greedy.” Whale trading paints an entirely opposite picture, as these peaks coincided with spikes in profit-taking. This would show that whales are taking advantage of recent all-time highs and thus helping accelerate the current market downturn.
