Monday witnessed significant volatility in the cryptocurrency market, with altcoins dropping by more than 10%. Analysts are uncertain about the precise cause behind this market downturn, though a recent decrease in spot Bitcoin ETF transactions may be a contributing factor. According to CoinGecko data, notable losers include Shiba Inu and Avalanche, which saw declines of 12.7% and 10.6%, respectively.

Other notable decreases were observed in Uniswap (UNI) and Dogecoin, both experiencing double-digit losses. Solana also fell sharply by 9.4%. The only asset that did not decline was Ripple's XRP, which saw a minimal increase of 0.1%. Over the past 24 hours, Bitcoin and Ether depreciated by 1.3% and 4.4%, respectively.

Henrik Anderrson, Chief Investment Officer at Apollo Crypto, commented on the market decline, acknowledging the challenge in pinpointing its exact cause. He suggested that the decline in spot Bitcoin ETF flows might have contributed significantly. This decrease in ETF flows likely led to instability among altcoins, prompting sudden liquidations among traders who had been consistently bullish on Bitcoin, Ethereum, and Dogecoin.

Meanwhile, despite Bitcoin facing challenges related to weak inflation data, Bitcoin mining stocks have shown strong performance in recent weeks. Mitchell Askew, head analyst at Blockware Solutions, noted that concerns over profitability post-halving had previously suppressed these stocks. Now, they are rebounding after underperforming relative to Bitcoin and its related assets. The Valkyrie Bitcoin Miners ETF (WGMI) has surged approximately 54% since the halving, indicating renewed investor confidence in the mining sector.