Bitcoin Holds Strong Amid Profit-Taking, Dogecoin Leads Declines in Broader Crypto Pullback

Bitcoin’s dominance remained intact during a broad market correction on Thursday, as major cryptocurrencies experienced losses following a wave of profit-taking. While Bitcoin (BTC) managed to hold steady around the $93,000 mark, other tokens saw notable declines, with Dogecoin (DOGE) leading the downward trend.

Dogecoin, once a meme-driven phenomenon, fell by more than 5% as investors opted to lock in profits after a recent rally. XRP and Solana (SOL) followed suit, posting declines of around 3% and 2%, respectively, while Ethereum (ETH) saw a smaller dip of 1.5%. The broader cryptocurrency market lost roughly 3% of its value, with the CoinDesk 20 index slipping alongside the selloff.

Despite the broader market’s pullback, Bitcoin held its ground, reflecting its growing reputation as a store of value and hedge against market volatility. Analysts point to Bitcoin’s strong institutional inflows as the driving force behind its continued resilience. On Wednesday alone, Bitcoin-focused exchange-traded funds (ETFs) saw nearly $800 million in inflows, signaling increased demand from institutional investors looking to gain exposure to the cryptocurrency amid uncertainty in traditional financial markets.

The recent profit-taking phase can be attributed to investor caution following several months of strong gains across major crypto assets. As the market shifts from a risk-on to a risk-off sentiment, Bitcoin has stood out as a safe-haven asset, largely due to its limited supply and its growing acceptance as a hedge against inflation and geopolitical risks.

“While other altcoins like Dogecoin and Solana are experiencing significant pullbacks, Bitcoin’s status as a digital gold alternative continues to attract capital from both retail and institutional investors,” said Mark Palmer, an analyst at Benchmark. “Bitcoin’s unique characteristics—namely its scarcity and growing institutional interest—help it maintain a relatively stable price in times of uncertainty.”

In the traditional markets, profit-taking has also been widespread, with U.S. equities pulling back from their recent highs and global economic concerns weighing on investor sentiment. U.S. President Donald Trump’s comments about tariff cuts and ongoing trade discussions with China continue to stir uncertainty, causing volatility across asset classes.

While the crypto market has seen significant growth in recent months, particularly in Bitcoin and Ethereum, experts advise caution in the short term. “There’s potential for further consolidation in the broader market,” said Laura Wang, chief strategist at Digital Asset Research. “With Bitcoin’s price action still facing resistance around the $95,000 level, we may see further dips before the next rally.”

Despite these potential short-term fluctuations, Bitcoin’s long-term outlook remains positive, with growing institutional adoption and continued support from major financial players. As the market navigates this period of profit-taking, many investors remain confident that Bitcoin will continue to outperform other assets in the coming months.