Altcoins Plunge as Bitcoin Dominance Climbs, Over $200M in Longs Liquidated
Altcoins saw a sharp selloff Wednesday, triggering over $200 million in liquidations and pushing Bitcoin’s market dominance back above the 60% mark — a signal that risk appetite may be shifting back to large-cap assets.
Major tokens including Solana (SOL), XRP, and Toncoin (TON) led the decline. TON dropped 11%, SOL fell 7%, and XRP slid 5.2% despite a brief recovery from intraday lows. Ethereum (ETH) also retreated, with $43 million in long positions wiped out — the most among all altcoins. XRP followed with $32 million in liquidations.
The losses highlight growing fragility in altcoin markets, where liquidity remains thin compared to Bitcoin. While BTC enjoys around $40 million in two-percent market depth on each side of the order book across major exchanges, XRP’s depth is just $5–6 million. This makes even moderate sell orders capable of triggering exaggerated price swings and liquidation cascades.
Traders are closely watching ETH’s key support at $3,470. Holding this level could signal a return of bullish momentum. A breakdown, however, could deepen the correction and trigger further liquidations.
Open interest in Ethereum remains elevated at $24 billion — more than double its 2021 peak — indicating significant leverage exposure behind recent price action.
Meanwhile, CoinMarketCap’s altcoin season indicator dipped to 47 from 55, reflecting growing weakness across the sector despite an uptick in retail trading activity.
Market analysts say a sustained altcoin rebound may require Bitcoin to break decisively above $124,000 and consolidate, potentially allowing capital to rotate back into more speculative assets.
