Bitcoin Slides Lower, ADA, SOL, and XRP Shed 5%, Yet Traders Eye Buying Opportunities

Bitcoin Falls 2% as Altcoins Drop; ETF Unwinding and Tariff Concerns Weigh on Markets

Bitcoin (BTC) declined 2% on Monday, extending last week’s downturn as altcoins like Solana (SOL), Cardano (ADA), XRP, and Dogecoin (DOGE) lost up to 5%, according to CoinDesk Indices data.

BTC attempted to break through $84,000 resistance on Sunday but failed, retreating to $83,300 by Monday afternoon in Asia, signaling continued market uncertainty.

Altcoins See Sharp Losses, Except for BNB

Most major altcoins underperformed Bitcoin, with broad losses across the market. However, BNB Chain (BNB) was a rare standout, gaining 3%, making it the only large-cap crypto in the green.

ETF Unwinding and Macro Fears Pressure Markets

The broader market sell-off follows concerns over U.S. tariffs and a potential economic slowdown, which have weighed on sentiment.

Some traders point to ETF-driven positioning as a key factor behind the latest selling pressure.

“What we’re seeing is likely an unwinding of leveraged trades linked to ETFs,” said Augustine Fan, Head of Insights at SignalPlus, in a message to CoinDesk. “When spreads tighten and profits shrink, funds need to de-risk, leading to forced selling of Bitcoin and ETF shares.”

A common hedge fund strategy, the basis trade, involves buying spot Bitcoin (often via ETFs) and shorting BTC futures to capitalize on price spreads. When these spreads compress, funds exit their positions en masse, adding to the market downturn.

Investors Eye Altcoins Amid Market Weakness

Despite the sell-off, some traders see growing interest in altcoins and memecoins.

“Trading volume has shifted toward altcoins after Trump’s World Liberty Financial acquired MNT and AVAX,” said Nick Ruck, director at LVRG Research. “With AVAX also included in VanEck’s ETF application, traders may be looking for alternative opportunities outside of Bitcoin and Ethereum.”

Even as Bitcoin struggles, many investors remain confident in a market rebound, believing that the recent volatility presents a “buy the dip” opportunity.

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