The crypto market saw a significant drop this morning, with altcoins being punished more severely than Bitcoin. Although Bitcoin remained relatively stable compared to some altcoins, the overall trend was clear: red numbers dominate. What exactly happened?

How much have Bitcoin, Ethereum, and altcoins dropped?

Bitcoin (BTC) is about 7 to 8% below its August peak, when the highest price was around $124,128.

Altcoins such as Solana (SOL), XRP, and Cardano (ADA) have suffered larger losses: SOL, for example, fell about 4–5% in 24 hours according to some reports.

Ethereum (ETH) lost 1.7% in one day according to Crypto Radar.

Other altcoins, especially smaller or less liquid ones, have often seen even sharper declines, depending on sentiment and macroeconomic factors.

Why have altcoins fallen more sharply than BTC?

Several factors are at play, with expectations around regulation and ETFs being an important part:

Regulation & ETF easing
The U.S. SEC recently approved rule changes that speed up the process of launching spot crypto ETFs. For example, through so-called generic listing standards, exchanges such as NYSE, Nasdaq, and Cboe can approve new crypto-related ETF products more quickly, provided they meet certain criteria.

However, the prospect of this easing seems to have a double effect: on the one hand, it creates opportunities (more altcoin ETFs in the pipeline), on the other hand, it creates uncertainty as investors struggle to assess which altcoins will actually be approved and when, and what the competition will be.

Profit taking / “sell the news” effect
When positive news is expected (such as ETF approval easing), buying often occurs in advance, meaning much of the potential price increase is already priced in. Once the news is out, waves of selling (profit-taking investors) follow, leading to corrections — especially among altcoins, which are more volatile and often see stronger price moves.

Macroeconomic pressure & liquidations
Factors such as higher interest rates, inflation expectations, and capital flows away from riskier assets make investors less willing to hold altcoins. During declines, liquidations also occur (especially in altcoin derivatives), which further exacerbates the drop.

Uncertainty about which altcoins can meet new rules
Not all altcoins will be easily approved under the new ETF rules, for example due to a lack of regulated futures markets, surveillance/fraud risks, or liquidity. Investors are therefore carefully considering which coins are best positioned. However, this can trigger speculation and volatility, especially among altcoins.

Drop follows news of ETF procedure easing

Last week, the easing of ETF procedures was big news in crypto. The SEC approved generic listing standards, which means exchanges will need less time-consuming and personalized approval processes for certain crypto ETFs. Examples of altcoins benefiting from this news include XRP and Solana: ETF applications for these coins are already in progress, and market players expect these to be approved more quickly.
However, the news is not unanimously positive; the market reaction shows that expectations were often already priced in, and the actual realization may disappoint in the meantime, especially with specific altcoins.

What are the current expectations?

Based on what is known and what analysts are saying, here are some expectations:

Short-term correction remains possible
Since part of the ETF news was already priced in, further downward movements could occur in the coming days/weeks, especially among altcoins, before stability returns.

Bitcoin stabilization first
Bitcoin is likely to stabilize earlier than altcoins. If investors pull back from riskier coins, capital may temporarily flow into BTC as a “safer” haven within crypto, limiting its relative losses.

Selective rise of altcoin ETFs
Once the new procedures are active, certain altcoin ETFs (such as for SOL, XRP, ADA, and possibly DOGE) are expected to receive faster approval. This could bring additional inflows into these coins later this year, positively impacting their prices.

Risks remain high
New rules also bring risks (legal, operational, scalability), and there is still uncertainty about timing. Moreover, global macro factors (interest rates, inflation, geopolitics) can override everything.

Cautious optimism towards Q4
Many analysts expect that the fourth quarter (Q4) of 2025 will be the moment when it becomes clear how many of these approved altcoin ETFs actually launch and what volume flows in. There is potential for recovery, provided regulation is supportive and the macro climate does not weigh too heavily. October is also approaching, a month often nicknamed 'Uptober' because prices tend to rise during this period. The question is whether those expectations will be met again this year.

Conclusion

Today‘s decline shows that the crypto market is sensitive to both regulatory news and macroeconomic pressure. Altcoins are hit harder than Bitcoin — partly due to higher expectations, partly due to greater risks and volatility. The easing of ETF procedures is a major step, but also brings short-term uncertainty. In the coming weeks, investors will closely watch which altcoins truly benefit from the new rules, which products are launched, and how the broader economic climate develops.

Disclaimer: This is not financial advice. Always do your own research and seek professional advice.