Ethereum, XRP, and Solana have seen notable price drops over the past 24 hours, with market analysts attributing the "outsized drawdowns" to broader macro factors. The total cryptocurrency market capitalization fell by 2.5% to $2.8 trillion, with Ethereum dropping 5.5% to a $289 billion market cap, XRP falling 5.1% to $82.4 billion, and Solana slipping 3.8% to $60.6 billion. Bitcoin also declined by 3.1%.

Analysts point to the 3.7% rise in the consumer price index for the year to September and a 28% chance of an October interest rate hike as key drivers. Nick Forster, founder of Derive.xyz, noted a shift to "protection mode" with hedging activity doubling. CoinShares' Luke Nolan added that altcoins, being high-beta assets, are more sensitive to tightening financial conditions and a rising U.S. dollar, which recently hit a near 18-month high. Bitwise Europe's Max Shannon suggested the slide is also a natural reaction after altcoins' strong performance in recent months, with futures open interest in altcoins (excluding Ethereum) falling by $8 billion since early October. Ethereum ETFs have also seen 11 consecutive days of net outflows totaling $782.8 million, followed by further outflows of $129.5 million.