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Kaiko: The several rounds of liquidation in February have reduced the leverage rate of altcoins, potentially paving the way for a more sustained upward trend in the future

Kaiko: The several rounds of liquidation in February have reduced the leverage rate of altcoins, potentially paving the way for a more sustained upward trend in the future

Bitget2025/03/04 10:46

ChainCatcher News, according to a Kaiko research report, the market downturn in February triggered several rounds of liquidation waves, significantly reducing the leverage levels of the top ten altcoins. The analysis believes that this position reset has created a healthier foundation for the cryptocurrency market and may pave the way for more durable uptrends in the coming weeks.

The report points out that with the United States announcing plans to establish strategic cryptocurrency reserves, although Bitcoin's reaction was relatively flat, overall market volatility surged dramatically, especially among altcoins. Since tariff sell-offs in February have consistently been below 200% intra-day hourly volatility soared after announcement with ADA's volatility breaking through 600%, marking it as having had one of largest increases amongst major altcoins.

Kaiko's analysis suggests that including specific altcoins into U.S. strategic reserves could accelerate capital rotation among altcoins and strengthen centralized trends in their price rises. Since November last year trading activity on US exchanges has increasingly been dominated by large-cap assets. A year ago, top ten altcoin trades accounted for 58% of all US platform-based transactions and 50% offshore; as of last week these shares had risen respectively to 77% and 66%.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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