XRP, APT, and ADA Continue to Slide 15% as Investors Rebalance Portfolios Pre-CPI.

Bitcoin Holds Firm at $95K as Altcoins Suffer Double-Digit Losses

The cryptocurrency market remained under pressure on Tuesday, with altcoins taking the brunt of the sell-off while bitcoin (BTC) saw a relatively modest dip, slipping 3% to $95,000.

Altcoins like XRP, Polkadot (DOT), Litecoin (LTC), Aptos (APT), and Cardano (ADA) experienced sharp losses, tumbling between 15% and 18% over the past 24 hours. The CoinDesk 20 index, which excludes stablecoins and memecoins, plunged nearly 10%, reflecting widespread risk aversion. Ethereum’s ether (ETH) and Solana’s SOL fared slightly better but still posted declines of 8% and 9%, respectively.

Bitcoin’s resilience contrasted sharply with the broader market, as its dominance climbed to 57.9% — the highest level in recent weeks — indicating a flight to safety amid the altcoin carnage.

The decline followed heavy liquidations earlier this week, with Monday’s market rout erasing $1.5 billion in leveraged long positions. Tuesday added another $450 million in liquidations, primarily from bullish bets, according to CoinGlass. Despite the downturn, bitcoin futures remain highly active, with open interest near $58 billion, down 6.8% from Sunday.

This pullback comes after an explosive rally in November, during which bitcoin surged past $100,000 for the first time and altcoins delivered outsized gains. However, the market is now bracing for U.S. inflation data set to be released on Wednesday, which could significantly influence sentiment.

“The market is taking a cautious stance ahead of the CPI report,” noted Ruslan Lienkha, Chief of Markets at YouHodler. “If inflation comes in higher than expected, it could deepen the ongoing correction and push back expectations for Federal Reserve rate cuts in 2024.”

Traditional markets, in contrast, have shown more stability. After slight losses on Monday, major U.S. indices were flat on Tuesday, highlighting a divergence in risk sentiment between digital and traditional assets.