Dogecoin leads a pullback across the cryptocurrency market as traders capitalize on recent gains, marking a notable correction among major tokens. The broader market experienced a wave of profit-taking, with several top coins dipping into the red following a strong start earlier in the week.
The meme-inspired token Dogecoin (DOGE) recorded the steepest losses among major digital assets on Thursday, shedding over 5% in value. Bitcoin (BTC) remained relatively resilient, hovering near the $93,000 level despite a market-wide dip. Meanwhile, XRP, Solana’s SOL token, Binance’s BNB, and DOGE all posted declines exceeding 2%. Ether (ETH) performed slightly better, noting a more modest 1.5% drop.
According to market metrics, the overall cryptocurrency market capitalization fell by approximately 2.5%, revealing investor caution. The CoinDesk 20 Index—which tracks the performance of the top 20 largest tokens—tumbled more than 3%, emphasizing the extent of the downtrend.
Despite the broader pullback, spot Bitcoin exchange-traded funds (ETFs) in the United States saw robust inflows. On Wednesday alone, they attracted more than $916 million in new capital. Analysts attribute this influx to Bitcoin’s increasing appeal as a hedge against market volatility, especially in light of a softening U.S. dollar and ongoing geopolitical tensions.
“The recent ETF inflows reflect Bitcoin’s burgeoning role as a secure store of value,” noted Vugar Usi Zade, Chief Operating Officer at Bitget. “As the U.S. dollar weakens and global equity markets fluctuate, investors are increasingly turning to Bitcoin for stability.”
He added that BTC’s declining correlation with traditional equities has further reinforced its image as a portfolio diversification tool. “While short-term signals appear mixed, the long-term narrative remains intact, assuming macroeconomic tailwinds continue to support risk assets.”
The safe-haven narrative around Bitcoin is becoming more pronounced. The cryptocurrency has mimicked the behavior of gold over the past week, staying afloat even as bond yields rise and U.S. equity indices come under strain due to ongoing tariff battles and international trade friction.
Earlier in the week, President Donald Trump reaffirmed his trust in Federal Reserve Chair Jerome Powell, stating he had no plans to dismiss him. He also mentioned that the U.S. was inching toward an agreement with China, which currently faces tariffs as high as 245% on specific products. While these remarks temporarily calmed markets, inconsistent messaging continues to cause uncertainty among investors who remain glued to policy developments.
“One significant source of investor concern—potential changes to Fed leadership—seems to have been quelled,” stated a note from Singapore-based QCP Capital. “Trump’s assurance has helped ease pressure on long-duration yields, removing an important downside risk from the market.”
Nevertheless, the outlook is far from clear. Persistent geopolitical worries, regulatory ambiguity, and trade uncertainties continue to loom. “Even with these assurances, significant macro risks continue to influence investor behavior,” QCP Capital added.
As the crypto market recalibrates, all eyes remain on key economic indicators and regulatory announcements that could influence sentiment. While the week’s correction was triggered by profit-taking, long-term adoption trends—especially among institutional investors—are likely to drive momentum forward for Bitcoin and its peers.
