CoinInsight360.com logo CoinInsight360.com logo
America's Social Casino

Crypto Potato 2025-05-30 10:42:58

Bitcoin (BTC) Benefits from Bullish Bets, Altcoins Punish the Optimists

While the collective crypto market has witnessed significant recovery this month, there is a growing disconnect in risk appetite among market participants. Investors are correctly positioned for Bitcoin’s rally, but similar optimism in the altcoin space has resulted in heavy losses, shows a recent report. Trader Missteps in Altcoins Since the approval of spot Bitcoin ETFs in January 2024, there has been a notable divergence has emerged in the liquidation patterns of BTC and altcoins. Data from Binance reveals that the largest cryptocurrency experienced a dominance of short liquidations totaling $190 million. This trend, according to a new analysis by CryptoQuant, suggests that traders betting against BTC during its price appreciation were consistently forced to exit their positions as the market moved higher. On the other hand, the same cannot be said for altcoins. During the same period, long liquidations in altcoins surged to nearly $1 billion, which was indicative of a continued downward pressure across the broader altcoin market and failed bets on a widespread recovery. As such, the report stated this as a clear sign of liquidation asymmetry. While BTC’s rally led to short squeezes and upward momentum, altcoins saw traders punished for attempting to preempt an “Altseason” that never materialized. Since December 2024, this pattern has intensified, with altcoin liquidations consistently outpacing those of BTC. CryptoQuant attributed this to excessive leverage and misaligned market sentiment, as altcoin bulls were increasingly forced to unwind losing positions. Few Altcoin Gems Emerge as Market Lags Despite the broader underperformance in the altcoin market, some assets stand out. According to analyst Rekt Fencer, increased stablecoin liquidity, a dip in Bitcoin dominance, and a recovering ETH/BTC ratio point to rising investor appetite for altcoins. He named five altcoins – GRASS, PENDLE, ONDO, ENA, and SEI – that he predicts could surge 50x-100x if market momentum continues. These tokens represent strong narratives, including decentralized infrastructure, tokenized yields, real-world asset exposure, synthetic dollars, and high-speed DeFi ecosystems. Meanwhile, other altcoins such as Tron (TRX) have shown resilience, and experts expect it to “multiply significantly in value,” potentially even quadrupling, if Bitcoin continues its bull run through the rest of the year. Sui (SUI) is yet another crypto that has witnessed the emergence of a bullish sentiment. The post Bitcoin (BTC) Benefits from Bullish Bets, Altcoins Punish the Optimists appeared first on CryptoPotato .

Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.