The cryptocurrency market witnessed a sharp downturn as altcoins experienced their largest pullback in months, with nearly $1 billion in liquidations triggered primarily by profit-taking in Western markets. The altcoin market capitalization plummeted nearly 10%, falling from $1.57 trillion to $1.4 trillion.
Analysis reveals divergent regional trading patterns driving the volatility. Asian trading activity fueled the preceding four-week rally, during which Bitcoin gained 16% monthly while Ethereum surged 63%, predominantly during Asian sessions. Conversely, US and European markets displayed net selling patterns, with Bitcoin declining -6% in US hours and -3% in Europe, alongside Ethereum dipping -26% and -7% respectively.
Despite the significant market retreat affecting altcoins with losses ranging from 6% to over 20%, sector analysts interpret the correction as a healthy consolidation rather than a bearish trend reversal. Market observers anticipate potential rebound opportunities for altcoin prices following this liquidation event.