#Gate2025AnnualReportComing

Brief Summary

Over the past 24 hours, the cryptocurrency market has fallen by 1.22%, continuing a monthly decline of 4.75%. The main reasons are the liquidation of long leveraged positions, investors shifting into Bitcoin, and negative technical signals.

Leverage position liquidations – long BTC positions worth over $47 million have been liquidated, derivatives trading volume increased by 41%
Sentiment decline – the fear and greed index dropped to 28 (extreme fear), with outflows from altcoins intensifying
Bitcoin dominance – BTC’s market share rose to 59.13%, indicating a defensive strategy by investors

Detailed Analysis

1. Leverage Position Liquidations (Negative Factor)

Overview: Over the past day, long BTC positions worth more than $47 million have been liquidated, and derivatives trading volume increased by 41% to $279.86 trillion. Funding rates for perpetual futures turned negative (-0.000236% for altcoins relative to BTC), encouraging short positions.

What it means: The market faced increased selling pressure as traders with excessive leverage, especially in Bitcoin, were forced to close positions. This created a vicious cycle: liquidations ➔ price drops ➔ new liquidations.

Points to watch: Open interest remains high — $741.98 billion. If funding rates continue to stay below zero, the sell-off could prolong.

2. Shift to Bitcoin Amid Risk Reduction (Mixed Effect)

Overview: Bitcoin’s dominance reached 59.13% (gained 0.18% in 24 hours) amid capital outflows from altcoins. The altcoin season index fell to 15 out of 100 — the lowest since April 2025.

What it means: Investors seek protection in Bitcoin amid macroeconomic uncertainty, leading to decreased liquidity in altcoins. ETH and XRP lag behind BTC by 1.79% and 3.45% over the week, respectively.

Points to watch: Breaking the critical support level for Bitcoin at $85 000 (according to CoinMarketCap) could trigger broader panic.

3. Technical Analysis (Negative Factor)

Overview: The total crypto market capitalization dropped below the 30-day moving average ($3.03 trillion) and is testing Fibonacci support at $2.94 trillion. RSI (36.62) indicates oversold conditions, but no reversal signals yet.

What it means: Technical analysts see this as confirmation of a downward trend. The MACD histogram shows a small bullish divergence (+$4.59 billion), but it’s not enough to change the overall market weakness.

Conclusion

The current decline is the result of a combination of leverage position liquidations, safe-haven shifts into Bitcoin, and breaking key technical levels. Despite oversold conditions that could trigger a short-term rebound, the main trend remains downward until Bitcoin consolidates above $88 000. Keep a close eye on today’s US PCE inflation data — higher figures could strengthen the correlation between cryptocurrencies and the stock market (over the past 24 hours +0.95 compared to small caps) and increase selling pressure.