Crypto Markets Erase Weekly Gains in Friday Selloff

After several days of steady gains fueled by optimism around monetary easing, the crypto market closed the week on a sour note. A sharp Friday downturn erased much of Bitcoin and Ethereum’s progress, with high-beta tokens like Solana and Dogecoin leading declines. The move illustrates how fragile sentiment remains, even as technical patterns suggest underlying strength in Bitcoin.

Bitcoin Loses Momentum

Bitcoin nearly broke through the $118,000 mark on Thursday, boosted by the Federal Reserve’s first interest-rate cut of the year. However, by Friday it had retreated to around $115,600, down 1.5% over the past 24 hours and essentially flat for the week. Despite the reversal, Bitcoin continues to form higher lows on the chart, a pattern that many traders see as a bullish signal for a potential breakout.

Ethereum and Altcoins Under Pressure

Ether also gave up ground, sliding 2.9% in the past 24 hours to $4,460 after briefly testing the $4,750 level earlier in the week. On a weekly basis, ETH is down about 1.5%. Solana and Dogecoin, two of the most heavily traded tokens in recent weeks, saw the sharpest pullbacks. Solana dropped below $240 after strong midweek momentum, while Dogecoin fell more than 3%, underscoring the volatility in speculative assets.

Market Context and Investor Psychology

The declines reflect a classic “escalator up, elevator down” market dynamic. Crypto prices had been buoyed by a narrative of renewed liquidity and potential inflows into risk assets after the Fed’s policy shift. However, profit-taking ahead of the weekend quickly erased those gains. For many traders, the pullback highlights the difficulty of sustaining rallies in a market where sentiment shifts rapidly and liquidity can evaporate quickly.

From a technical perspective, Bitcoin’s resilience in maintaining higher lows suggests a foundation for a more durable advance. Yet, for altcoins, the selloff serves as a reminder that speculative tokens are more vulnerable to swift reversals when enthusiasm cools.

Looking Ahead

Market participants will now watch whether Bitcoin can hold above the $115,000 threshold and continue its pattern of higher lows into next week. Sustained strength could set the stage for another attempt at $120,000. Meanwhile, investors will be gauging whether Ethereum can stabilize above $4,400 and whether speculative appetite for tokens like Solana and Dogecoin can withstand another bout of volatility.

For now, the week’s price action underscores the uneven footing of the current crypto rally: optimism is building, but confidence remains fragile, leaving digital assets highly sensitive to shifts in macro policy, liquidity conditions, and investor sentiment.