As #Bitcoin struggled to establish direction around the $70,000 level over the past week, the altcoin market exhibited pricing behavior swinging between cautious optimism and sudden liquidation-driven moves. In the second half of last week, markets found some relief after U.S. CPI data came in below expectations. However, buying remained limited. This relief was supported less by a sustainable increase in risk appetite and more by a rebalancing of leverage. Indeed, approximately $400 million in liquidations throughout the week indicates that market makers compressed the range by clearing excessive leverage on both the long and short sides.Against this backdrop, the slight easing in Bitcoin dominance signaled that capital was selectively seeking higher risk, creating room for flows into niche segments. #Memecoins and privacy-focused themes stood out in particular, while the fragile risk appetite produced sectoral divergence rather than a broad-based #Altcoins rally.
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As #Bitcoin struggled to establish direction around the $70,000 level over the past week, the altcoin market exhibited pricing behavior swinging between cautious optimism and sudden liquidation-driven moves. In the second half of last week, markets found some relief after U.S. CPI data came in below expectations. However, buying remained limited. This relief was supported less by a sustainable increase in risk appetite and more by a rebalancing of leverage. Indeed, approximately $400 million in liquidations throughout the week indicates that market makers compressed the range by clearing excessive leverage on both the long and short sides.Against this backdrop, the slight easing in Bitcoin dominance signaled that capital was selectively seeking higher risk, creating room for flows into niche segments. #Memecoins and privacy-focused themes stood out in particular, while the fragile risk appetite produced sectoral divergence rather than a broad-based #Altcoins rally.