Cryptocurrency Market Enters Correction Phase, Sentiment Turns Risk-Off

The crypto market is currently in a fairly widespread correction phase. Selling pressure is observed across almost all major assets, indicating a decline in market participants' risk appetite. Bitcoin, as the benchmark asset, has experienced limited correction, while altcoins are facing relatively deeper pressure.

Bitcoin (BTC) remains stable within a normal correction zone, showing that the weakness has not yet led to panic selling. However, sharper declines in Ethereum (ETH) and Solana (SOL) suggest that investors are beginning to reduce exposure to higher-risk assets.

On the other hand, small-cap altcoins and new tokens are the most affected group. Double-digit declines in several assets reflect a gradual exit of liquidity from the speculative segment. This condition is common when the market enters a consolidation phase or sentiment transition.

Interestingly, digital gold-based assets like XAUT remain relatively stable amid crypto weakness, reflecting a temporary shift to defensive assets. This reinforces the signal that the market is currently in a cautious mode.

Moreover, the overall market sentiment is shifting towards risk-off, with traders becoming more cautious and seeking safer havens amid the uncertainty. The decline in major cryptocurrencies indicates a move away from riskier investments, while assets perceived as safer, such as stablecoins and digital gold, are holding their ground.

The current correction appears to be a healthy adjustment following previous volatility. As long as Bitcoin can stay above key support levels, this correction should not be seen as the start of a bearish trend but rather as a pause for consolidation. Market participants are likely waiting for new catalysts or positive signals before re-entering more aggressive positions.

In summary, the market is in a cooling-off phase, with risk appetite subdued and caution prevailing. Investors should monitor key support levels and upcoming news events to gauge the next move in this evolving landscape.