Why are Altcoins, including Sui, Dogecoin and MYX facing losses?

The cryptocurrency market has taken a sharp hit, losing about $100 billion in value. The overall market capitalization has dropped from more than $4.1 trillion to nearly $4 trillion. This fall has hurt altcoins the most, including well-known tokens like Sui (SUI), Dogecoin (DOGE), and MYX Finance (MYX), which saw big losses.

In contrast, the U.S. stock market is still hitting record highs, showing how fragile the crypto market can be.

Why Altcoins Fell

One of the biggest reasons behind the drop is the massive options expiry on platforms like Deribit. About $3.5 billion worth of Bitcoin contracts and $800 million worth of Ethereum contracts expired, causing traders to sell off their holdings.

Another factor is profit-taking. Many altcoins had already gone through massive rallies, jumping by hundreds or even thousands of percent. For example, MYX Finance jumped 1,800% in a short time before crashing down, and Dogecoin rose before its ETF launch but quickly dropped after.

Technical charts also pointed to this correction. Bitcoin showed weak momentum with bearish patterns like a rising wedge and divergences on key indicators. MYX Finance also formed a “double-top” pattern, signaling a fall.

Global Impact

This downturn highlights the risks and fragility of the crypto space. The market still depends heavily on hype and fast profits, with little tolerance for shocks. Now, investors around the world are becoming more cautious, focusing on stability, regulations, and real-world use instead of pure speculation.

As a result, there may be slower transactions, reduced trading, and financial losses for many investors. In countries like Pakistan, where regulations and protections are limited, smaller investors could face even greater risks.