Crypto Market Selloff: Here’s Why ETH, SOL, XRP, DOGE, & PEPE Prices Are Falling

Crypto Market Selloff

The digital asset market has witnessed a sharp decline today, with the majority of altcoins failing to maintain a positive momentum. While Bitcoin's price remained relatively stable, major altcoins and meme coins such as Ethereum, Solana, XRP, Dogecoin, and Pepe Coin experienced a selloff.

Reasons Behind the Selloff

Several factors could have contributed to the recent plunge in the crypto market, especially among altcoins. Here are some of the potential reasons:

• Profit-Taking by Whales: The crypto market has seen strong gains recently, fueled by anticipation of the Spot Ethereum ETF and other regulatory developments. As a result, many investors seem to be taking profits due to the recent surge. For example, a significant Ethereum whale transaction today signaled a potential profit of $3.12 million upon sale.
• Disagreement over Ethereum ETF: The hype surrounding the Spot Ethereum ETF, especially after the SEC's approval, has driven Ethereum's price higher. However, some analysts have different views on its potential impact on the market. While some expect the Ethereum price to rise following the ETF's launch, others argue that it might not gain as much traction as the Bitcoin ETFs.
• Expected Outflow from GrayScale: A recent report from Kaiko suggests that Ethereum may witness a $110 million outflow upon the Ether ETF launch. Kaiko draws this comparison based on the significant outflow experienced by GrayScale's Bitcoin ETF.