1. Surge in Liquidations — Heavy Selling Pressure
In the past 24 hours, total crypto liquidations surged 102% to $529 million, while open interest stayed above $200 billion. Ethereum saw the largest share with over $190 million liquidated. Bitcoin and Solana followed with more than $40 million each. When large leveraged positions get liquidated, it triggers a domino effect of forced selling, accelerating the market drop.
2. Sticky U.S. Inflation Adds Macro Pressure
The Core PCE index—the Federal Reserve’s preferred inflation gauge—rose 0.3% in July, bringing the annual rate to 2.9%. Meanwhile, the headline PCE came in at 2.6%, both above the Fed’s 2% target. This fueled investor concerns that the Fed may keep interest rates high for longer, which spilled into equities as well—dragging down the S&P 500 and Nasdaq 100.
3. Bitcoin’s Bearish “Falling Wedge” Pattern
On the weekly chart, Bitcoin is forming a falling wedge pattern with bearish reversal signals. Indicators such as MACD and RSI also point toward further downside momentum rather than recovery. If confirmed, this pattern could lead to deeper corrections, putting additional pressure on altcoins.
Why are Altcoins getting beaten up more ?
Altcoins have been falling more and there are a few main reasons for this:
📌Bitcoin Dominance Issue
When uncertainty increases in the market, investors withdraw money from Altcoins and move to Bitcoin or stablecoins. As Bitcoin dominance has increased in recent times, investor confidence in Altcoins is decreasing.
📌 Liquidity Crisis
The liquidity of Altcoins is much lower than that of Bitcoin. As a result, prices fall quickly when there is a big sell-off.
