Altcoin Market Cap Sees Sharpest Correction Since Early July
The post Altcoin Market Cap Sees Sharpest Correction Since Early July appeared on BitcoinEthereumNews.com.
The crypto market cap has printed its first red weekly candle after four consecutive green ones. The bullish momentum appears to be losing steam, and the pullback has triggered liquidations for short-term traders. What triggered this week’s correction, and what does it mean going forward? Nearly $1 Billion Liquidated as Market Cap Falls in Final Week of July According to TradingView data, the overall crypto market cap dropped by 5% this week, from nearly $4 trillion to $3.78 trillion. However, the altcoin market cap (TOTAL2) plunged more sharply. It fell almost 10%, from $1.57 trillion to $1.4 trillion. Altcoins corrected more steeply than Bitcoin, which caused losses for short-term derivatives traders. Coinglass reported nearly $1 billion in liquidations over the past 24 hours. Liquidation Data of July 24. Source: Coinglass “In the past 24 hours, 314,302 traders were liquidated. The total liquidations come in at $966.04 million,” Coinglass reported. Of the nearly $1 billion liquidated, over $840 million came from long positions, accounting for about 84%. This highlights the failure of many short-term traders who used leverage and expected prices to continue rising this week. In addition, data from CryptoBubbles showed that nearly all altcoins dropped sharply today, with losses ranging from 6% to over 20%. Altcoin Price Performance on July 24. Source: CryptoBubbles This move could be seen as the first wave of profit-taking after four straight weeks of rising market cap. Who’s Taking Profits? According to a new report from 10x Research, Asian trading hours were the main driver of the recent rally. While Bitcoin posted a +16% gain overall, Asian hours alone contributed +25% to that rise. This means that both Europe (-6%) and the US (-3%) actually saw net selling, likely due to profit-taking. A similar pattern emerged with Ethereum. ETH has surged 63% in the…
