- Analyst Van de Poppe says Q2 shows more altcoin stability after harsh Q1 losses.
- Altcoin bulls faced $1 billion in long liquidations due to overleveraged positions.
- Bitcoin is seen as an institutional asset, altcoins are still viewed as speculative..
Michaël van de Poppe, a crypto analyst, explained to investors that the dips are not unusual. Although there were considerable losses for altcoins in January to March this year, van de Poppe states that stability is increasing in the current quarter.
Meanwhile, Ethereum has performed strongly, showing remarkable increases. According to the analyst, altcoins are likely to improve further in the upcoming quarter, which could indicate potential recovery for the broader market.
Altcoins Stabilize After Harsh Q1, Ethereum Shows Strength
Many altcoins struggled during the first quarter, as a lot of their tokens dropped sharply in value. Liquidations on major exchanges indicated that a significant amount of leverage was eliminated during this period. However, the most recent data indicates a period of reduced selling pressure. According to Van de Poppe, altcoins are becoming more stable, suggesting support levels are starting to take shape after steep declines.
Meanwhile, Ethereum has shown resilience and growth. After an initial increase in price in mid-May, ETH entered a consolidation phase, trading between $2,450 and $2,750. This range suggests healthy market digestion and that institutional investors may be accumulating. Unlike other altcoins, Ethereum continues to grow and stand out as stability rises throughout the market.
Liquidation Data Reveals Market Imbalance Between Bitcoin and Altcoins
After the launch of the Bitcoin ETF, there has been a distinct difference in how traders behave. When Bitcoin crossed above $100,000, it triggered a wave of liquidations, putting heavy pressure on short traders. Meanwhile, during the same period, major liquidations were sustained among altcoins.
The rising liquidation delta confirms this trend. Long liquidations in altcoins outpaced shorts by nearly $1 billion, which suggests excessive bullish leverage that failed to pay off. Traders who believed BTC prices would continue rising were reinforced when liquidation data showed that long positions generated the most profit from the trend. These data suggest that the cryptocurrency market is shifting in terms of risk appetite.
Market Outlook: Cautious Optimism for Altcoins Amid Ethereum Rally
The difference between Bitcoin and altcoins suggests that institutions see Bitcoin as viable, but altcoins are mainly bought and sold for speculation. Inflows into the Bitcoin ETF and its wide acceptance are helping Bitcoin, though altcoins remain vulnerable to sharp corrections. The market awaits clear signs of leverage reduction and new capital inflows into altcoins.
If Bitcoin holds above the $100,000 level, capital could start rotating back into select altcoins. Furthermore, Ethereum’s strong fundamentals and rising price support a rise in altcoins. However, traders are advised to hold off until liquidation numbers stabilize again and the market starts to show more positive signs beyond Bitcoin and Ethereum.
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