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Bitcoin Stabilizes at $118,500 While Altcoins Face $967 Million in Crypto Liquidations
The cryptocurrency market has witnessed a stark divergence as Bitcoin maintained stability near $118,500 while major altcoins experienced steep declines. This development was accompanied by a surge of nearly $1 billion in crypto liquidations within the past 24 hours.
According to recent data, Bitcoin traded between $117,422 and $119,197, ultimately settling at $118,578. In stark contrast, XRP and Dogecoin plummeted by 10% each, while Ethereum topped the liquidation charts with a staggering $200 million in forced closures.
As reported by our sources, long positions accounted for a significant portion of these liquidations as traders betting on price increases faced losses. The situation highlights an intriguing capital rotation phenomenon where investors are seemingly abandoning altcoins to flock towards Bitcoin.
Furthermore, market indicators revealed that aggressive speculation has yet to emerge, suggesting the absence of overheated conditions in the derivatives sector. However, this stability may not persist indefinitely, and it is crucial for traders to closely monitor retail behavior and miner activity for any potential shifts in market dynamics.
The data also showed a substantial increase in Open Interest across major altcoins, with an astonishing 69% growth from $26 billion to $44 billion since July began. This marked a significant surge in futures positions open on centralized exchanges.
In conclusion, Bitcoin’s consolidation around the $118,500 mark is not indicative of its fundamental strength but rather a result of traders’ rotation away from altcoins.
Source: blockonomi.com
