Bitcoin News Today: Altcoin Liquidations Outpace Bitcoin as Market Shift Gains Momentum

Altcoin liquidations have surged past Bitcoin on Binance in early 2025, according to a CryptoQuant report, marking a notable shift in market activity [1]. The cumulative liquidation delta has flipped in favor of altcoins since the beginning of the year, with the trend intensifying in July. Both long and short positions are being wiped out as traders increasingly use leverage in anticipation of significant price movements. Binance, as the largest cryptocurrency exchange, plays a pivotal role in fueling this speculative wave, with altcoins becoming the primary playground for traders seeking the next big rally.

The signs of a potential altseason—historically defined as a period of strong altcoin outperformance—are gaining momentum. The altcoins market cap has broken out of a downtrend for the third time in two years, with historical breakouts typically leading to multi-hundredfold rallies [1]. The latest breakout suggests a potential 200x move, reflecting growing optimism and bullish sentiment. However, confirmation remains pending. The CoinGlass Altcoin Season Index currently stands at 53, indicating a mildly bullish trend but falling short of the 75 threshold typically associated with a full altseason [1]. Bitcoin’s dominance, at 59.49%, continues to decline, further suggesting a shift in market dynamics.

Whale activity also supports this narrative. One Ethereum whale recently sold over 4,242.4 stETH at a $50,000 loss, as highlighted by a $3.96 billion unstaking queue [1]. The move implies that larger market participants are repositioning toward altcoins, possibly anticipating a shift in market leadership. Blue-chip altcoins such as Cardano (ADA) and OKB have seen significant price surges, with OKB rising 130% in a short timeframe [5]. This broad-based activity among altcoins indicates growing participation from both retail and institutional traders.

Despite these signs, caution persists. The broader market remains in a transitional phase, with Bitcoin’s dominance still holding a considerable portion of market capitalization. While altcoin liquidations have outpaced Bitcoin, a sustained and widespread rally across multiple altcoins would be necessary to confirm a full altseason. Analysts emphasize that the current momentum, though encouraging, is not yet indicative of a definitive trend shift [7]. Until altcoins demonstrate consistent performance and broader macroeconomic factors stabilize, the altseason remains a possibility rather than a confirmed reality.

Sources:

[1] AMBCrypto - https://ambcrypto.com/altcoin-liquidations-explode-past-bitcoin-is-altseason-finally-here/

[5] Yellow.com - https://yellow.com/research/crypto-market-pulse-cardano-breaks-out-okb-soars-130-btc-holds-dollar118k-support

[7] TradingView - https://www.tradingview.com/symbols/BTCUSDT.P/ideas/?exchange=BLOFIN