More than $600 million in leveraged positions were liquidated, causing a drop in altcoins and an increase in Bitcoin dominance to 59.4%.
The Rise and Fall of Crypto Markets
Markets saw a sudden reversal on Thursday: Bitcoin, after nearly reaching $124,000, dropped below $121,000 in less than two hours. A swift move closely tied to the massive profit-taking seen in precious metals.
Silver Soars Before Violently Correction
The standout event of the day came not from Bitcoin but from the silver market. After soaring nearly 50% since April, the metal hit a historic milestone of $50 per ounce for the first time ever. This record immediately triggered a brutal selling spree, plunging the price to $48.55 within minutes.
According to Daniela Sabin Hathorn, senior analyst at Capital.com, “the market remains overbought in the short term, but demand for levels above $50 could persist if the macroeconomic context and real rates remain favorable”.
Gold did not escape this pullback: after trying to break through $4,100 per ounce, it retreated by just over 1% to around $4,035. A consolidation expected after several weeks of excitement fueled by a weak dollar and political uncertainty in the United States.
Bitcoin, Collateral Victim of the Movement
Bitcoin, the king of digital assets, which was still flirting with its all-time high, was dragged into the profit-taking wave. By early afternoon, BTC was trading around $121,000, erasing some of its gains for the week.
This pullback is part of a general climate of caution, accentuated by the partial shutdown of the U.S. government, postponing the release of key economic indicators. A situation that clouds the visibility of investors, both in traditional markets and digital assets.
Altcoins Bleed, Bitcoin’s Dominance Rises
Altcoins suffered more. Ethereum dropped 3.5% below $4,300, while BNB and Dogecoin declined by 3 to 4%. This widespread pullback strengthened Bitcoin’s dominance, now at 59.4% of the total market, its highest level in two months.
Traders seem to be seeking refuge in the stability of BTC, reducing their exposure to riskier assets: still no alt season in sight…
$600 Million Liquidated in Derivatives Markets
Volatility also hit derivatives platforms: over $600 million in leveraged positions were liquidated in 24 hours, according to CoinGlass. A figure that highlights the market’s fragility after a rapid recovery just a few days ago.
The return of caution is setting in, but the underlying bullish trend remains intact. As long as real rates remain low and gold stays close to its records, Bitcoin remains firmly in the big leagues, even when stumbling by a few thousand dollars.
