Raydium, Zcash and altcoins drop over 12% as crypto market slides 3.7%

Altcoins outpace Bitcoin losses

During the earlier selloff, Bitcoin traded near $81,000. The total cryptocurrency market capitalization contracted by approximately 3.7% in 24 hours, falling to $2.7 trillion, according to data from Invezz. Despite the decline, Bitcoin remained more resilient than many smaller tokens, which absorbed larger percentage losses as market stress intensified.

This divergence follows a common trend: while Bitcoin often serves as a relative safe haven for digital asset investors, smaller tokens can suffer accelerated losses when market sentiment turns negative and liquidity dries up.

Raydium, a decentralized exchange token built on the Solana network, ranked among the steepest decliners on Thursday. RAY retreated more than 12%, giving back a portion of its earlier rally. Over the last 90 days, Raydium had surged approximately 170%, leaving it exposed to profit-taking amid heightened uncertainty.

Zcash, a privacy-focused cryptocurrency, also experienced a pronounced downturn. Roughly $20 million in leveraged positions tied to ZEC were liquidated during the October 15 session, further amplifying selling pressure.

Starknet and Lighter followed a similar pattern, both sliding more than 12% over the same period as risk appetite across altcoins diminished.

Market analysts emphasized that sudden reversals in smaller tokens are typical during volatile episodes because speculative traders are quick to reduce positions, seeking out safer assets or cash.

Macroeconomic headwinds and structural pressure

The downtrend coincided with US macroeconomic news. September’s Consumer Price Index increased by 3.7% compared to the previous year, outpacing forecasts, and producer prices jumped to 6.3%. This data heightened expectations that the Federal Reserve may keep borrowing costs elevated, limiting risk-taking behavior across all financial markets, including crypto.

Rising interest rates typically weigh more heavily on digital assets due to their reliance on future growth assumptions, making them more sensitive to a restrictive monetary environment.

Higher US inflation data and increased expectations of tighter Federal Reserve policy have contributed to a broad reduction in appetite for speculative cryptocurrencies, particularly illiquid altcoin markets.

However, analysts noted that macroeconomic challenges alone do not fully explain the larger losses in altcoins. Market depth remains a key differentiator. When liquidity is thin, even moderate sell orders can provoke sharp price drops due to a lack of readily available buyers.

Bitcoin generally benefits from stronger exchange order books and wider participation from institutional investors. This deeper market structure can make Bitcoin less vulnerable to dramatic swings resulting from individual trades.

Leverage plays a crucial role in this dynamic. Falling prices can trigger forced liquidations, especially in derivatives markets, compounding declines and exacerbating volatility for already illiquid altcoins.

For Zcash and other affected tokens, the unwinding of leveraged positions translated into additional downward momentum.

Ethereum and Solana have also experienced steeper percentage declines than Bitcoin during past periods of market turbulence, as traders sought to minimize exposure to volatile assets.

Mini dictionary: Raydium is a decentralized exchange and automated market maker (AMM) built on Solana, enabling users to trade cryptocurrencies and provide liquidity.

Looking ahead: Key levels and market sentiment

The upcoming focus is whether Bitcoin can sustain a move above the $80,000 to $82,000 resistance range. Previous rebounds have provided some relief to the wider crypto market, but analysts caution that price recoveries do not necessarily signal a lasting return of speculative demand.

For altcoins, metrics such as derivatives positioning and open interest are particularly important to monitor. A decline in open interest may indicate that traders are de-risking, which could help reduce the likelihood of cascading liquidations in the short term.

Sustained weakness in Bitcoin could continue to weigh on the broader market, making it more difficult for riskier assets to recover.

Altcoins now face dual challenges: ongoing macroeconomic headwinds and structural market vulnerabilities that can amplify losses beyond those seen in Bitcoin.

While confidence may return and divergences can narrow in future sessions, the recent selloff underlines the risks that thin liquidity and leveraged trading can pose to smaller tokens during periods of instability.