The cryptocurrency market remains under pressure, with altcoins facing heavy losses while Bitcoin continues to demonstrate resilience. Ethereum, in particular, has been hit hard, raising concerns among investors.
Altcoins Bear the Brunt of Market Decline
The total crypto market capitalization has dropped another 2.7%, now standing at $3.6 trillion. Altcoins are experiencing the sharpest declines, with little indication that investors are shifting funds from Bitcoin into alternative assets.
Crypto trader TXMC noted that the majority of crypto Twitter (CT) participants are already heavily exposed to altcoins, making a capital rotation into Bitcoin unlikely.
Market analyst James Check echoed these concerns, stating that traders are overweight in underperforming altcoins, making them highly vulnerable to even small Bitcoin corrections.
“Crypto traders are largely underexposed to Bitcoin and heavily invested in struggling altcoins,” Check explained.
“That’s why a 1% dip in BTC can result in a 30% portfolio loss for many traders.”
Ethereum Faces Increasing Sell Pressure
Ethereum has seen one of the biggest declines, with trader Bluntz describing the current altcoin sell-off as unprecedented, even though Bitcoin remains above $100,000.
ETH briefly dropped to $3,000 before recovering slightly, marking a 16% decline from its January high of $3,700. The ETH/BTC ratio has continued to weaken, now sitting at 0.03, its lowest level in nearly four years.
Further compounding Ethereum’s struggles are internal changes at the Ethereum Foundation, which analysts suggest are weighing on investor confidence.
Despite this, some positive developments could support ETH in the long run, including:
• Donald Trump’s involvement in DeFi and the continued accumulation of ETH by World Liberty Financial.
• Speculation that a Trump administration could establish a national Ethereum reserve, as suggested by blockchain prediction platform Polymarket.
• Historical trends indicating that Ethereum could reach a new all-time high in the coming months.
However, these factors have yet to ease investor anxiety, as Ethereum remains weak in both USD and BTC terms.
Bitcoin Remains Steady Above $100K
While altcoins struggle, Bitcoin continues to hold firm, staying above $100,000 for nearly two weeks. On Tuesday, BTC briefly dipped to $100,272, but quickly rebounded to $102,600 during Wednesday’s Asian trading session.
Despite ongoing market uncertainty, Bitcoin is only 6% away from its all-time high, and February has historically been a bullish month for BTC price action.
With Bitcoin maintaining its strength and altcoins continuing to decline, the coming weeks could determine whether capital rotation finally happens—or if BTC dominance continues to grow while the altcoin market remains under pressure.
