Cryptocurrencies lose momentum for growth: ETH, SOL, and ADA follow Bitcoin down

Bitcoin, which has repeatedly hovered around the $90,000 key price, is facing a concerning issue – a noticeable lack of upward momentum. Against the backdrop of a stronger global stock market and a weaker dollar, mainstream cryptocurrencies were supposed to follow suit, but the reality is the opposite. Major coins such as Ethereum, Solana, and Cardano have seen declines, reflecting a deep-seated crisis of confidence in the market.

Bitcoin lacking upward momentum

Bitcoin is currently trading around $83,920, with a 24-hour decline of -6.23%. This price is already well below the level near $98,000 at the beginning of the week. While there was a chance to break $90,000 before, the massive sell-off triggered by liquidations broke the momentum. According to the data, the scale of liquidations this week exceeded $100 million, enough to destroy the rising confidence of market participants.

Even more frustrating, Bitcoin has not been able to regain momentum even if the macro environment has improved. The current market shows that the price is consolidating rather than really recovering - the market is waiting, but there are many waiters.

The general dilemma of mainstream cryptocurrencies

Ethereum is currently trading at $2,790, with a 24-hour decrease of -7.45%. Solana is near $116.59, down -7.27%. Cardano fell to $0.33, a decrease of -7.75%. Ripple (XRP) is around $1.79, down -6.77%.

These coins have performed disappointingly over the past week – most large-cap coins have fallen between 7% and 12%. While Asian stocks hit record highs and the New York futures market also showed modest growth signals, the cryptocurrency market bucked the trend. This disconnect reveals a critical issue: crypto assets have become high-volatility risk tools rather than safe-haven assets.

Why the stock market rally failed to pull cryptocurrencies

On a global macroeconomic front, the situation does not look bad. Asian equities continue to break records, with the MSCI Asia Pacific index hitting new highs. Emerging market stocks are also on the rise. The US dollar saw a sharp decline earlier in the week, which has historically been positive for Bitcoin as a weak dollar usually reinforces the appeal of alternative assets.

But all this has limited boost to cryptocurrencies. U.S. stock index futures signal a modest rise before the New York open, but the gains are far less than those in Asian markets. Crypto investors are cautious on the sidelines – an atmosphere that suggests that market participants view crypto assets as risk indicators rather than value assets.

The “high risk” label weighs down the cryptocurrency

One market analyst noted, “Cryptocurrencies still behave like a volatility amplifier rather than a protective tool.” While the liquidation event cleared up excessive leverage, uncertainty about policy, financing costs, and regulation still plagues investors, leading them to take a wait-and-see approach rather than actively build positions. "

This observation gets to the heart of the problem. Cryptocurrencies are now seen as high-beta assets – tools that amplify market movements. When risk assets are on the downside as a whole, cryptocurrencies bear the brunt of the downturn. While a weaker dollar has historically fueled Bitcoin, the relationship has been volatile, especially as investors prefer assets with clear cash flows or earnings.

Contrasting performance of gold

The contrast is particularly obvious. The price of gold exceeded $5,500 per ounce, with a single-day nominal value increase of about $1.6 trillion. According to JM Bullion’s sentiment index, the precious metals market is in an extremely optimistic phase. However, the crypto sentiment index of the same type is still stuck in the fear range.

Investors tend to choose tangible gold and silver over digital tokens when seeking asset protection. This speaks volumes about the lack of full trust in the narrative of cryptocurrencies as “digital gold,” especially during times of market uncertainty.

The market is waiting for a clear signal

Currently, the crypto market is in a delicate waiting period. Investors are waiting for clearer signals - from the movement of the US stock market, clear guidance from the Fed’s policy, and the stability of funding rates. As long as these key indicators remain vague, Bitcoin will struggle to regain upward price momentum.

Judging from the current data, market participants have chosen to remain cautious. Although the liquidation has passed, its psychological impact continues. In an environment of policy uncertainty and a bleak yield outlook, whether Bitcoin can break through the $90,000 mark depends on whether global risk appetite truly improves – something that will take time to verify.

*The data in this article comes from authoritative institutions such as CoinGecko, MSCI, and JM Bullion. *