- Bitcoin dominance surged to a 4-year high as altcoins underperformed, with 24-hour liquidations reaching $2.29 billion.
- Despite the current market turmoil, analysts like Juice and Skew noted patterns reminiscent of previous altcoin rallies.
Amid the rising fears of Trump trade wars, Bitcoin and altcoins faced massive correction today, as we discussed earlier. While Bitcoin is down 4-5% today, altcoins have crashed by a greater magnitude, with Ethereum (ETH), XRP, Solana (SOL), and BNB Coin (BNB) each seeing a 10-15% drop. This has pushed Bitcoin dominance to even greater heights, hitting a 4-year high.
Donald Trump’s Trade War Hits Bitcoin and Altcoins Hard
February has started on a very bearish note for the crypto market despite it being the strongest-performing month historically. BTC/USD has dropped as much as $6,000 since the weekly close, marking its lowest level since January 13. This move takes Bitcoin back to the bottom of the trading range it has maintained since November.
The Coinglass data shows that the 24-hour crypto market liquidations have soared to $2.29 billion, with the long liquidations crossing more than $1.91 billion. Popular crypto market analyst Roman Trading noted:
Wild times in this range. I won’t lie i didn’t expect to see lower 90s again but here we are. Bull divs, Stoch Reset, & sitting in range low support area. Would make sense to see us bounce here soon.
Roman joined the growing chorus of analysts expressing optimism that Bitcoin could stabilize and rebound without breaking out of its established range.
President Donald Trump has fulfilled his pledge to impose 25% tariffs on Canada and Mexico, asserting that the move will prove beneficial in the long run. While speaking to reporters on Monday, Trump said:
We may have short term some little pain, and people understand that. But long term, the United States has been ripped off by virtually every country in the world.
BTC Dominance Hinting At Altseason Ahead?
Focusing on altcoins, trader and analyst Skew highlighted “capitulation wicks” as numerous tokens plunged by 20% or more. It’s an absolute bloodbath in the altcoin market, with most digital assets falling under their key support levels.
As Bitcoin dominance hit fresh highs earlier today, market analysts have turned hopeful that this could be the final correction before the altcoin season kicks off. Crypto analyst Juice on the X platform posted:
BTC.D is printing almost the exact same pattern as it did just before last alt season kicked off, zoom in and look! 2 red weekly candles, followed by 2 small green weekly candles, followed by 2 giga green candles. Look what happens next…… ALTSEASON.
Former BitMEX CEO Arthur Hayes had recently predicted a Bitcoin price crash to $75K, as previously mentioned in our report. In his recent message on the X platform, Hayes wrote: “The beatings shall continue until morale improves. The pain stops when a TradFi outfit is on the verge of bankruptcy. Then the Fed reluctantly joins team Trump and prints that money. And then you better be ready to buy crypto like you have never bought before”.
