Crypto Retreat Deepens as Ether, XRP, Solana Fall Despite Asian Stock Rally

Major cryptocurrencies tumbled Thursday despite a tech-led rally in Asian and U.S. equity markets, with ether, XRP, and Solana leading the decline as traders grappled with a strengthening dollar and Federal Reserve rate uncertainty that kept crypto rallies frustratingly short-lived.

Broad Weakness Across Majors

Bitcoin traded near $66,700, down about 1.7% over 24 hours, while ether slipped similarly to around $1,965. XRP suffered steeper losses, falling nearly 5%, and Solana dropped close to 4%. BNB and Dogecoin also traded in the red, reflecting broad-based weakness rather than token-specific pressures.

Fed Minutes Strengthen Dollar

The pullback in digital assets tracked a firmer dollar after Federal Reserve minutes signaled no urgency to cut interest rates and even left the door open to further hikes. This hawkish stance contrasted sharply with risk appetite improvements in traditional equity markets, highlighting crypto's unique sensitivity to monetary policy shifts.

Digital Gold Narrative Under Scrutiny

Gold's steady strength as a haven asset, contrasted with crypto's choppy trading, has intensified debate over bitcoin's "digital gold" narrative. However, some analysts remain optimistic, expecting a sharper bitcoin rebound once broader risk appetite returns to markets.

The divergence between crypto and equity performance underscores digital assets' continued struggle to decouple from traditional market dynamics, particularly dollar strength and rate expectations that continue to dominate trader sentiment.