Cryptocurrency Market Correction: Altcoins Slump as Bitcoin Holds Steady Amid Rising Leverage
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OVERALL declines in major altcoins were reported Thursday, with XRP, Solana, and Dogecoin each falling more than 5% in value. Analysts point to the thin summer trading activity, increasing U.S. Treasury yields, and elevated leverage in leveraged trading as key factors pressuring the market deeper than the leading cryptocurrency, Bitcoin, which managed to maintain its position in a narrow trading range.
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Analysts warn that the “cautious sentiment amid thin summer liquidity” is just one interpretation of the recent market performance. High levels of leverage across the altcoin market have created risk of a liquidation cascade, a view shared by market participants and some industry experts.
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Data from platforms like CoinGlass shows cumulative liquidations significantly impacting the altcoin market, wiping out over $250 million in leveraged long positions daily. On Thursday’s brief dip for Bitcoin, which triggered widespread liquidations, further consolidated the bearish sentiment across the crypto landscape.
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Specifically, according to CoinGecko, the跌幅 were 5% for XRP, 5.9% for Solana, and even more significant at around 7% for Dogecoin on that day.
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Macro factors also weigh heavily, with a strengthening US dollar and rising real yields impacting the broader crypto market, alongside high demand for investment capital. An analysis linking the muted market response to positive news to "late-cycle behavior" further underscores uncertainty, suggesting the bearish trend may persist. Market observers suggest this pattern indicates the crypto market is near a critical juncture and may face prolonged headwinds.
