Altcoins Tumble as Ethereum Dumps 5% — BTC Retreats to $117K Ahead of Weekend

Bitcoin Retreats to $117K: ATH Highs Meet Macro Reality

After a spectacular run to $124,500 earlier in the week — a new all-time high — Bitcoin has cooled off, slipping to $117,500 as of Friday evening.

The move follows a volatile week:

• Monday: Surge from $119K to $122K
• Wednesday–Thursday: Breakout to $124,500 on strong momentum
• Friday: Sharp reversal after hotter-than-expected U.S. PPI data spooked traders

Despite speculation around the Trump-Putin meeting and its potential impact on geopolitical risk, BTC barely flinched — showing maturity in the face of global uncertainty.

Still, the retreat to $117K marks a 5-day low, and market cap has pulled back to $2.34 trillion. Bitcoin dominance remains strong near 58%, underscoring its role as both leader and safe haven in the crypto stack.

The question now:
Is this a healthy consolidation before the next leg up?
Or the start of a broader risk-off rotation?

Ethereum Leads Altcoin Bloodbath: 5% Drop Below $4,500

If Bitcoin is cooling, Ethereum is correcting hard.

After flirting with $4,800 — just shy of its 2021 all-time high — ETH has collapsed 5% in 24 hours, now trading well below $4,500.

The drop is particularly sharp given ETH’s recent strength, fueled by:

• Spot ETF inflows
• L2 ecosystem growth
• Pectra upgrade anticipation

But with BTC pausing and macro sentiment wavering, ETH was always vulnerable to a pullback. As the highest-beta major alt, it often leads both rallies and sell-offs.

And this time, it’s leading the way down.

Broad Altcoin Carnage: SOL, LINK, AVAX, SUI, HYPE Hit Hard

The pain isn’t isolated. A wide-scale altcoin correction is underway:

• Solana (SOL): Down ~6%
• Chainlink (LINK): Off ~5%
• Avalanche (AVAX): Slips 4.5%
• Sui (SUI): Drops over 7%
• HYPE: Tumbles 6%

Only Mantle (MNT) defied the tide, surging over 10% to $1.20, possibly on renewed optimism around its Layer-2 yield and upcoming ecosystem grants.

Still, the broader picture is red:
📉 Total crypto market cap has fallen $80 billion in 24 hours
📉 Now sits at $4.05 trillion (down from $4.13T)
📉 Fear & Greed Index likely cooling from “Greed” toward “Neutral”

This is classic post-rally digestion — especially after Bitcoin’s euphoric $124.5K peak.

Why This Correction Was Inevitable

Three forces converged to trigger the pullback:

1. Profit-Taking After ATH Momentum
   After weeks of grinding higher, many traders took profits at or near cycle highs — especially in ETH and top alts.
2. Hot U.S. PPI Data
   July’s Producer Price Index came in hotter than expected, reviving Fed rate hike fears and strengthening the dollar — a headwind for speculative assets.
3. Weekend Volatility Compression
   With low liquidity and institutional desks quieting ahead of the weekend, thin markets amplify sell-offs.

This isn’t panic.
It’s rebalancing.

Weekend Watch: Support Levels to Monitor

As trading slows into the weekend, key levels will determine the next move:

🔸 Bitcoin: Watch $116,500–$117,000 as immediate support. A break below could signal deeper correction toward $114K.
🔸 Ethereum: $4,400 is the next major floor. Holding above keeps the bull case intact.
🔸 Total Market Cap: A retest of $3.95T could shake weak hands — but would also create a strong buy zone.

Historically, sharp dips after new BTC highs are followed by strong rebounds — especially when fundamentals remain intact.

Final Word: Pause, Not Panic

Yes, the red is real.
But so is the context.

This isn’t a崩盘 — it’s a healthy correction after one of the most explosive weeks of the cycle.

Bitcoin may have pulled back, but it’s still up massively on the week.
Ethereum corrected, but its ETF flows and ecosystem momentum haven’t disappeared.

And while alts are bleeding, leaders like MNT show rotation, not capitulation.

So while the weekend may bring more chop,
the next week could reignite the rally.

Because in crypto, every crash is just a setup for the next climb.