Although market dynamics signal the onset of an altcoin season, Bitfinex believes any major correction in bitcoin’s price would be magnified in these assets.
Last week, the Total3 Index reached new cycle highs, achieving its largest trough-to-peak move since April 2021 with a 23.2% surge. The total market cap of these crypto assets rallied close to their collective May 2021 high of $984 billion. Bitfinex said this surge is likely driven by ongoing developments in the regulatory landscape.
Notably, the higher funding rates for large-cap altcoins are a sign for investors to exercise caution while trading because these assets could experience minor corrections in the coming days. Bitfinex said the market has already experienced daily liquidations running into hundreds of millions of dollars over the past week for short and long positions.to remain above $93,000 as investors take profits. The cryptocurrency was worth $93,550 at the time of writing, down 3.