Bitcoin (BTC) Open Interest Drops 7.5% as Altcoins Reclaim Market Share, Altseason Incoming?
- 王林Original
- 2024-08-27 15:26:10914browse
On Aug. 27, on-chain analytics provider Santiment reported that Bitcoin's recent “mild” price drop was enough to cause a larger decline in total open interest on exchanges.
On-chain analytics service Santiment recently observed a capital rotation toward altcoins in response to the recent market recovery.
According to Santiment's analysis, a "mild" 2.2% drop in Bitcoin's price over the past 24 hours triggered a significant 7.5% decrease in total open interest on cryptocurrency exchanges. In contrast, total open interest for Ethereum and Solana remained largely stable during the same period.
This observation suggests that traders may be shifting their focus toward altcoins, with increasing attention on ETH, SOL, and other assets following the market downturn earlier this month.
Since the August 5th dump, Ethereum has recovered approximately 23% of its value, while Solana has surged by 45%. Several other altcoins, particularly those related to artificial intelligence, have experienced even more substantial gains, rallying to pre-sell-off levels.
Santiment's analysis also highlights the capital rotation from large traders, who may be reducing their exposure due to uncertainty. The larger drop in open interest for BTC compared to smaller assets might indicate that traders anticipate the August rebound ending and are attempting to sell the top.
Several analysts have anticipated altseason in the near future, as reported by CryptoPotato on August 26th.
Trader and analyst "Stockmoney Lizards" stated that alts still need to suffer a bit more in a post on X on August 26th.
They conclude that Bitcoin dominance can rise up to 60-70% post-halving before alts begin outperforming BTC. According to Tradingview, it is currently at 57.53%.
As of writing, crypto markets are dipping again after a monthly peak in total capitalization of $2.37 trillion on August 25th. The total cap has decreased by 2.6% over the past 24 hours, reaching $2.31 trillion.
Bitcoin's price has been steadily declining, reaching $62,750 during the Tuesday morning Asian trading session. The primary cryptocurrency appears to be returning to its rangebound zone around the $60K price level.
Ethereum has lost 2.4% on the day, falling back to $2,680, while the majority of other altcoins are also in the red.
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