The latest market downturn has created a potential opportunity for investors interested in high-risk, high-reward altcoins like Solana (SOL), which has seen a larger-than-usual pullback compared to Bitcoin, according to one analyst.

Bitcoin (BTC) saw a slight rebound after dipping to $98,000, recovering to approximately $101,500, though it remained down by 3% over the past 24 hours. The broader crypto market, tracked by the CoinDesk 20 Index, dropped 5.6%, with tokens linked to AI, such as Render (RNDR) and Filecoin (FIL), also taking significant hits. Solana, a popular blockchain for crypto AI projects, plunged more than 10%.

This sharp decline led to nearly $1 billion worth of leveraged positions being liquidated across the crypto market, as per CoinGlass data. U.S. tech stocks also suffered, with the Nasdaq falling 3%, driven by a 17% drop in Nvidia, wiping out $465 billion of its market value. This further highlights Bitcoin’s increasing correlation with tech stocks, as noted by Geoffrey Kendrick, head of digital asset research at Standard Chartered.

Additionally, crypto-adjacent companies didn’t escape unscathed, with Coinbase (COIN) losing 6.7% and Galaxy Digital (GXY) dropping 15.8%. MicroStrategy, the largest corporate Bitcoin holder, saw a smaller 1.5% decrease in its stock price.

Bitcoin mining stocks were particularly hard-hit, with Riot Platforms (RIOT) and Marathon Digital Holdings (MARA) experiencing drops of 8.7% and 16%, respectively. Miners that pivoted to artificial intelligence (AI) and high-performance computing for AI training endured even worse losses. Core Scientific (CORZ), TeraWulf (WULF), Bitdeer (BTDR), Cipher Mining (CIPH), and Applied Digital Corporation (APLD) all saw declines between 25% and 30%.

Aurelie Barthere, principal research analyst at Nansen, commented, “The crypto and AI sectors had been priced for a lot of ‘good news,’ and a correction was inevitable after such a strong rally.”

Looking ahead, all eyes will be on the Federal Reserve’s meeting and earnings reports from major tech firms. Although corporate earnings have been strong so far, reports from Nvidia and other big players will need to surpass expectations to keep the market momentum alive.

The recent sell-off may provide an opportunity for investors who missed out on the crypto rally following President Trump’s election. Barthere highlighted that for those looking for higher returns, now could be a prime time to consider altcoins like Solana (SOL), which have experienced steeper sell-offs compared to Bitcoin.