Altcoins including Dogecoin (DOGE), Solana (SOL), and Cardano (ADA) experienced significant declines Thursday morning as traders moved funds into Bitcoin following a brief rally triggered by favorable inflation data.
Dogecoin fell 5.8% to $0.19, Tron (TRX) dropped 6.8% to $0.2717, and Cardano declined 5.1% within 24 hours. Avalanche (AVAX) lost 5.4%, Sui (SUI) decreased by 5.6%, and Chainlink (LINK) dropped 6.7%. Solana decreased 3.9%, while XRP shed 3.7%, according to CoinGecko.
In contrast, Bitcoin (BTC) and Ethereum (ETH) showed resilience, with losses under 2%, falling 2% and 1.5% respectively.
Experts characterize this pullback as a routine market correction rather than a shift in investor sentiment. Dr. Kirill Kretov, Senior Automation Expert at CoinPanel, told Decrypt that altcoin movements under 5% are considered market noise, and fluctuations up to 10% are normal. He emphasized that altcoins inherently carry greater risk compared to Bitcoin and Ethereum.
Tracy Jin, COO of MEXC, attributed the downturn mainly to profit-taking amid high volatility. She also noted broader macroeconomic influences, including a strengthening US dollar and rising government bond yields, which usually dampen appetite for riskier assets.
Yesterday’s positive market response to May’s Consumer Price Index—showing inflation at 2.4%, below forecasts—initially boosted Bitcoin and major altcoins. ETH and SOL gained 1% and 1.7% respectively immediately after the report.
Paul Howard, Senior Director at Wincent, described the current moves within normal daily trading ranges but expressed concern over Dogecoin, citing possible medium-term decline following controversies involving its notable backers.
Despite short-term weakness, analysts maintain cautious optimism. Jin suggested that if Bitcoin holds above $100,000 and institutions continue investing, altcoin interest could rebound, marking a new phase of growth.