- The rising Bitcoin Dominance was bad news for the altcoin markets.
- The Stablecoin Exchange Reserves showed potential for a rebound.
In the past 24 hours, $2.18 billion worth of liquidations were seen across the crypto market, the biggest-ever liquidation event. Bitcoin [BTC] saw $409 million worth of liquidations, but the altcoin market has taken a much harder hit.
The evidence for this was both the price action and the swift rise in Bitcoin Dominance (BTC.D) in recent hours.
The latter was a sign of relative BTC strength, or altcoin weakness. The BTC.D was not beyond the 60% resistance zone- and this was not good news for altcoins. Yet, stablecoin metrics showed there could be some hope.
There was too much blood on the streets to ask “when altseason” so we will ask the next best question — what can traders and investors expect in the coming months, and could an altseason be among the likely outcomes?
Dry powder and ammunition to “buy the dip”
Before any panic sets in, it must be noted that Bitcoin has not yet lost the lows of the 2-month range lows at $92k.
The Tether [USDT] metrics were examined to see if buyers have any strength. The USDT Exchange Reserves have been growing over the past two years.
More stablecoins in Exchange Reserves imply greater buying power present in the market. However, it could take a while for the bulls to step in after the extreme liquidation event in recent hours.
Author: Akashnath S
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