Bitcoin Slips 2% as Altcoins Drop; ETF Unwinding and Macro Worries Weigh on Market

Bitcoin (BTC) fell 2% on Monday, extending last week’s losses as altcoins like Solana (SOL), Cardano (ADA), XRP, and Dogecoin (DOGE) dropped up to 5%, according to CoinDesk Indices data.

BTC briefly tested $84,000 resistance on Sunday before pulling back to $83,300 by Monday afternoon in Asia, reflecting broader market uncertainty.

Altcoins Struggle, While BNB Bucks the Trend

Most major tokens saw losses, with altcoins underperforming Bitcoin, except for BNB Chain (BNB), which rose 3%, making it the only top asset in the green.

Market Faces Pressure from Macroeconomic Concerns and ETF Unwinding

The crypto market has struggled to regain footing after last week’s sell-off, which traders attribute to U.S. tariffs and concerns over a potential recession.

Some analysts believe that a breakdown in ETF and spot market positioning may have contributed to recent selling pressure.

“A lot of this selling looks like ETF-driven unwinding,” said Augustine Fan, Head of Insights at SignalPlus, in a message to CoinDesk. “Large funds using multi-strategy approaches may be de-risking positions due to tightening spreads and macro uncertainty.”

A common hedge fund strategy, the basis trade, involves buying spot Bitcoin (often through ETFs) while shorting BTC futures to profit from price differences. When spreads tighten and profits shrink, funds exit these trades by selling BTC and ETF shares, adding downward pressure on the market.

Bulls Maintain ‘Buy the Dip’ Mentality

Despite the downturn, traders remain focused on opportunities in altcoins and memecoins amid an otherwise sluggish market.

“Altcoin trading volumes have increased since Trump’s World Liberty Financial acquired MNT and AVAX,” said Nick Ruck, director at LVRG Research. “With AVAX also included in VanEck’s ETF application, traders may shift focus to altcoins for short-term gains over Bitcoin or Ethereum.”

Meanwhile, long-term investors appear to view the dip as a buying opportunity, expecting markets to stabilize after short-term volatility linked to tariffs and ETF positioning.