Bitcoin Surges Amid Trade War Fears, Altcoins Plummet

Bitcoin Market Cap Dominance Rises Amid Trade War Fears While Altcoins Experience Significant Sell-Offs

Bitcoin's market capitalization dominance has surged to nearly 62% amid escalating trade tensions and fears of a global economic slowdown. This increase comes as altcoins, particularly Ethereum and Solana, have experienced significant sell-offs, with investors rotating out of riskier assets and into the relative safety of Bitcoin.

The recent decline in altcoin prices can be attributed to a combination of factors, including growing geopolitical tensions, a wave of U.S. tariffs against key trading partners, and a broader market downturn. The sell-off has been particularly pronounced in Ethereum, which has lost more than 17% of its value in the past 24 hours, while Solana has declined by 9%. Bitcoin, on the other hand, has weathered the storm relatively well, with its price down by around 4% at the time of writing.

The sell-off has also led to a significant increase in liquidations, with total liquidations exceeding $2.2 billion in the past 24 hours. Ethereum has been particularly hard hit, with combined long and short liquidations exceeding $609.9 million. More than 730,000 traders have been affected by the mass sell-offs, as uncertainty grips the market.

Futures markets have also been hit hard, with traders of ether-linked products losing over $600 million in the past 24 hours. Combined losses on XRP and DOGE futures totaled $150 million, while altcoin-tracked products shed $138 million. Ether-tracked futures lost $84 million.

Analysts have attributed the recent sell-off to a variety of factors, including the potential impact of U.S. tariffs on global trade, the strengthening of the U.S. dollar, and the potential for higher inflation to reduce the appeal of cryptocurrencies as a hedge. However, some analysts have also noted that Bitcoin's long-term fundamentals remain strong, and that the cryptocurrency could still serve as a hedge against currency devaluation and inflation.

Despite the recent sell-off, some analysts remain optimistic about the long-term prospects for Bitcoin and altcoins. Alvin Kan, COO of Bitget Wallet, has suggested that the current