Crypto Market Dips Amid Profit-Taking and ETF Momentum

Major cryptocurrencies saw a sharp downturn on Thursday, with some tokens sliding as much as 5% as investors took profits following this week's steady gains. Dogecoin (DOGE) led the losses among top assets, dropping over 2% alongside XRP, Solana (SOL), and BNB. Bitcoin (BTC) held near $93,000, while Ether (ETH) was more resilient, falling only 1.5%.

The overall crypto market cap fell 2.5%, and the CoinDesk 20 Index, which tracks the largest liquid tokens, declined by over 3%. The market weakness came despite a significant $916 million in inflows into U.S.-based spot Bitcoin ETFs on Wednesday.

Analysts attribute the ETF inflows to Bitcoin’s rising status as a safe-haven asset amid macro uncertainty and equity market volatility. Bitget COO Vugar Usi Zade noted that a declining U.S. dollar index and institutional demand are driving the trend, reinforcing Bitcoin's appeal as a hedge and diversification tool. However, he also warned that weak near-term investment signals could require stronger macroeconomic catalysts to sustain momentum.

Bitcoin’s performance has recently mirrored gold’s upward trajectory, supported by falling bond yields and cautious optimism following President Donald Trump’s remarks that he has no plans to remove Federal Reserve Chair Jerome Powell. The statement eased market fears, leading to a slight decline in long-end Treasury yields.

Still, market sentiment remains fragile. Persistent risks—ranging from escalating U.S.-China trade tensions, high tariffs (up to 245%), and regulatory uncertainty—continue to cloud the broader outlook. Singapore-based QCP Capital emphasized that while some overhangs have cleared, traders remain wary of ongoing geopolitical and economic instability.

Despite short-term volatility, Bitcoin’s evolving narrative as a digital safe-haven continues to strengthen its long-term investment case.