Why Bitcoin, Ethereum, Ripple and Solana are leading a decline in crypto

Crypto market cap is in a downtrend on Wednesday after Bitcoin’s new all-time high last week. Institutional crypto adoption is likely the key catalyst for crypto as retail trader sentiment is nearly unchanged since last week. 

Why is crypto down?

The crypto market has been hit by a wave of correction as the top ten cryptos like Bitcoin (BTC), Ethereum (ETH), XRP and Solana (SOL) see their prices decline. Bitcoin dropped under the $120,000 support and hovers around $118,000 at the time of writing. 

Ethereum, XRP and Solana nosedived under key support levels on the daily price chart. The drop in crypto prices is likely the result of profit-taking by retail traders or large wallet investors and capital rotation or positioning before the expected coming altcoin season.

Retail traders, whales are taking profits

Bitcoin, Ethereum and XRP have recorded higher profit-taking since May 2025. The large positive spikes indicate profit-taking by traders. Whale activity peaks coincide with profit-taking spikes in the same time period, as seen on Santiment. 

As retail traders and whales shed their holdings for profits, it increases the selling pressure on the tokens and contributes to a price decline. 

Network realized profit/loss for Bitcoin, Ethereum and XRP

Catalysts like institutional adoption and developments within the tokens’ ecosystem are other factors influencing the price of the top three cryptos. 

Altcoin season is loading 

The altcoin season index, a metric used to identify whether it is the altcoin season yet, reads 49 on a scale from 0 to 100. A reading above 75 would imply that it is the altcoin season, a time period where 75% of the top 50 cryptos ranked by market capitalization outperform Bitcoin. 

Altcoin season index | Source: Blockchaincenter

The index was above 75 six months ago in December 2024. Since then, Bitcoin dominance has increased and institutions have shifted their focus to BTC. Altcoins like ETH, XRP and SOL enjoy a relatively high correlation with Bitcoin, greater than 0.75, therefore a correction in BTC results in a decline in prices of these altcoins. 

Crypto traders are still bullish

The Crypto Fear & Greed Index, an indicator of the sentiment among traders shows that retail is “greedy” or bullish at the time of writing. The index reads greedy for last week as well, meaning that retail trader sentiment is not influenced by the correction in Bitcoin and altcoin prices. 

Crypto Fear & Greed Index | Source: Alternativedotme

Traders can interpret this as a sign that the bull run is not over and that sustained demand could drive prices higher, meaning Bitcoin and altcoins could re-test their recent highs. Crypto market capitalization is $3.941 trillion at the time of writing, down 5.6% in the past day.