Bitcoin Struggles to Hold $115K; Solana, Dogecoin Show Relative Strength as Risk-Off Sentiment Lingers
Bitcoin’s price struggles to break above $115,000 following a significant weekend drop that wiped out nearly $6,000 from its peak and triggered over $1 billion in liquidations of leveraged long positions. While markets have shown some stabilization since Monday, uncertainty persists due to renewed trade tensions stemming from new tariffs imposed by Donald Trump and fluctuating ETF flows.
On Tuesday, Bitcoin traded around $114,200, remaining relatively unchanged but below the crucial $115,000-$118,000 support level seen over the past two weeks. Ethereum performed better, recovering towards $3,650 after a weekend dip below $3,550, buoyed by ongoing institutional interest and consistent investment. LVRG Research Director Nick Ruck notes Ethereum’s near recovery from this week’s decline while Bitcoin remains below $115,000. He attributes the continued demand to treasury strategies, IPOs, and the ongoing search for the next MicroStrategy-like investment.
Altcoins, however, have underperformed. Solana has fallen nearly 20% from its recent highs, and XRP remains stagnant near $3 despite broader market stabilization. The anticipated “altseason” seems less imminent, with traders shifting capital back to major cryptocurrencies or adopting a wait-and-see approach.
This cautious sentiment is partly due to a weaker-than-expected U.S. jobs report and heightened trade tensions. The resulting risk aversion in global markets has negatively impacted cryptocurrencies. Bitcoin and Ethereum spot ETFs experienced significant outflows on Friday, dampening hopes for short-term price support from institutional investment.
Despite this, some remain bullish. QCP Capital observes the recent decline as corrective rather than a market crash. Increased activity in BTC options markets, particularly call options targeting $124,000, suggests sophisticated investors are positioning for a potential rebound. While uncertainty remains, a return above $115,000, coupled with increased ETF inflows and reduced implied volatility, could rapidly shift market sentiment. Conversely, persistent outflows and diminished risk appetite could lead to further price drops before a true market bottom is established. The coming days will heavily depend on institutional demand and the resolution of macroeconomic concerns.
