The Majority of Other Cryptocurrencies Underperformed Bitcoin
Following nine weeks of losses, Bitcoin, or BTC is now displaying signs of life. Extremely pessimistic mood and oversold signs appear to have persuaded some buyers to come back into the market. When BTC surpassed $30,000 on Sunday, the majority of its reassurance bounce was felt. According to Arcane Research, the price increase over the weekend was bitcoin’s highest daily return since March.
On Tuesday, the majority of alternative cryptocurrencies underperformed bitcoin, indicating that traders are still hesitant to assume further risk. After breaking above a 12-month downtrend on May 13, Bitcoin’s market cap in relation to the whole cryptocurrency market cap has tacked up over the last three days. Due to their greater risk profile, alts often perform worse than BTC in bearish markets.
Let’s Look at Some Stats
Even yet, some cryptocurrencies increased their price on Tuesday as gloomy feeling started to fade. For instance, compared to a 4% increase in BTC during the same period, the price of the ADA token from Cardano and the AXS token from Axie Infinity both increased by as much as 15% over the previous 24 hours. On the other hand, the XMR token for Monero dropped by 4% and the AVAX token for Avalanche fell by 3% on Tuesday. Despite the recent respite in risk-off circumstances, trading conditions in equities and cryptocurrencies are still generally volatile.
The increase in short liquidations that occurred on Sunday as a result of the price jump in BTC was the biggest one since May 11. That may be indicative of a short squeeze, which occurs when traders who are short Bitcoin rush to close out of their positions as the price unpredictably rises. Liquidations happen when an exchange, acting as a safety mechanism, forcibly terminates a trader’s leveraged position due to a partial or complete loss of the trader’s initial margin. That mostly occurs in futures trading.
Source: https://www.thecoinrepublic.com/2022/08/21/bitcoin-went-below-22000-again/