The cryptocurrency market experienced a significant downturn on Tuesday, with major tokens such as Bitcoin and Ether experiencing substantial declines. The downturn was primarily driven by ongoing profit-taking and continued net outflows from U.S.-listed Bitcoin ETFs, which dampened bullish sentiment. Dogecoin and Solana led the losses, with both tokens shedding around 9% in the past 24 hours.

Bitcoin's price plummeted to nearly $66,500, erasing all its Monday gains, while Ether fell to $3,400, reversing all the progress made last week. The decline in Bitcoin was particularly notable, as it hovered around the 50-day moving average at $66,000, testing the medium-term uptrend. The net outflows from U.S.-listed Bitcoin ETFs reached $145 million, extending the disappointing trend from the previous week.

Dogecoin and Solana, which are known for their high volatility, were among the worst performers. Dogecoin's price dropped by 9.08% over the past 24 hours, while Solana's SOL lost around 9% in the same period. Other major tokens, such as Ton Network's TON and BNB Chain's BNB, also experienced significant losses, with TON falling 5% and BNB losing 1.5%.

The broad-based CoinDesk 20 (CD20), a liquid index of the largest tokens, excluding stablecoins, dropped by 4.2%. The decline in the CD20 index reflects the broad-based nature of the downturn, with many major tokens experiencing significant losses.

Several factors contributed to the decline in the cryptocurrency market. One key factor was the ongoing profit-taking, which has been a recurring theme in recent weeks. Additionally, the continued net outflows from U.S.-listed Bitcoin ETFs have put downward pressure on the market. The Federal Reserve's indication of only one interest rate cut in 2024 also contributed to the decline, as a strong dollar tends to put downward pressure on Bitcoin.

Another factor that weighed on the market was the political uncertainty triggered by Emmanuel Macron's surprise decision to call a snap election in France. This event further strengthened the dollar, as traders exited the euro, which in turn put downward pressure on Bitcoin.

Despite the decline, some analysts remain optimistic about the long-term potential of the cryptocurrency market. Neil Roarty, an analyst at Stocklytics, noted that it would take significantly lower interest rates and a weaker dollar to push Bitcoin closer to the $70,000 mark.

Overall, the decline in the cryptocurrency market reflects the ongoing volatility and uncertainty in the space. As the market continues to navigate these challenges, investors should remain cautious and monitor developments closely.