The recent market selloff could present a compelling entry point for traders looking to capitalize on high-volatility altcoins, such as Solana’s SOL, which experienced a significant double-digit pullback, according to one analyst.
Bitcoin (BTC) saw a minor rebound after hitting a low of $98,000, with its price hovering around $101,500 at the time of writing, still down 3% over the past 24 hours. Meanwhile, the broader market, represented by the CoinDesk 20 Index, dropped 5.6%, driven by steep losses in AI-related tokens like Render (RNDR) and Filecoin (FIL). Solana, a key platform for crypto AI agents, was among the hardest hit, falling over 10%.
This sharp downturn liquidated nearly $1 billion in leveraged derivatives positions across various crypto assets, according to data from CoinGlass. In parallel, the Nasdaq closed down 3%, with Nvidia leading the decline, dropping 17% and losing $465 billion in market value. This move further solidified Bitcoin’s strong correlation with tech stocks, as noted by Geoffrey Kendrick, Head of Digital Asset Research at Standard Chartered Bank.
Crypto-adjacent stocks also faced significant losses, with exchange Coinbase (COIN) falling 6.7%, and investment firm Galaxy (GXY) dropping 15.8%. MicroStrategy, the largest corporate holder of Bitcoin, fared relatively well, seeing only a modest decline of 1.5%.
Bitcoin mining stocks took an even harder hit, with major miners Riot Platforms (RIOT) and MARA Holdings (MARA) plummeting 8.7% and 16%, respectively.
Miners who had pivoted to AI and high-performance computing, to support infrastructure for artificial intelligence training, saw even steeper declines. Core Scientific (CORZ), TeraWulf (WULF), Bitdeer (BTDR), Cipher Mining (CIPH), and Applied Digital Corporation (APLD) all faced losses of 25% to 30%.
“It appears the crypto and AI-related stocks, including those in the Nuclear ETF, which had risen by 20% over the past month, reached a point where profit-taking was inevitable,” said Aurelie Barthere, Principal Research Analyst at blockchain intelligence firm Nansen.
Market participants are now turning their attention to this week’s Federal Reserve meeting and earnings reports from major tech companies. While corporate earnings have been strong, reports from Nvidia and other big tech firms will need to exceed expectations to maintain market momentum, according to Barthere.
The recent selloff may also offer a fresh opportunity for altcoin investors who missed out on the crypto rally following President Trump’s election victory. Barthere suggested that high-beta crypto tokens, such as Solana (SOL), which have experienced more substantial sell-offs than Bitcoin, may offer attractive buying opportunities.
