Solana Plunges 14%, XRP, Dogecoin Down 8% as Crypto Market Sell-Off Worsens

Cryptocurrency prices have continued to decline, with major coins losing significant value in the past 24 hours.

Solana (SOL) has fallen by 14%, bringing its losses over the past seven days to more than 20%. Dogecoin (DOGE), XRP, and Ethereum (ETH) have all declined by more than 8%. Bitcoin has lost the $92,000 level, a potential sign of further weakness.

Overall, the cryptocurrency market capitalization has dropped by 6.6%. The CoinDesk 20 (CD20) index, which tracks the largest coins, has fallen by more than 7%.

Traders are citing a lack of positive catalysts and bearish sentiment as reasons for the decline. However, some experts believe the market may be overreacting.

Jeff Mei, COO of crypto exchange BTSE, said that key macroeconomic decisions will be crucial for supporting market growth. He noted that concerns about inflation and a pause in Federal Reserve rate cuts have weighed on markets, but weak economic data could lead to further action by the Fed.

Augustine Fan, head of insights at SignalPlus, said that the narrative of a slowdown is likely to continue in the near term, with stocks and bonds trading in tandem. He believes that markets are refocusing on the possibility of Fed easing, which could provide tailwinds for both gold and Bitcoin in the future.

Data released earlier this month showed that the Consumer Price Index (CPI) surged by 0.5% month-over-month in January, leading investors to prefer cash positions or risk-off bets. Changes in CPI readings tend to impact cryptocurrencies, as investors view them as a hedge against inflation.