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Binance Observes Bitcoin’s Decoupling from Altcoins Amid Liquidation Trends

Binance Observes Bitcoin’s Decoupling from Altcoins Amid Liquidation Trends

Published:
2025-05-31 12:04:40
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Recent data from CryptoQuant highlights a significant divergence between Bitcoin and altcoins, marking a shift in their historically correlated movements. Previously moving in sync with correlation coefficients ranging between 0.50 and 0.90, Bitcoin and altcoins have shown a stark decoupling since late 2024. By May 2025, Bitcoin soared past the $100,000 milestone, while altcoins experienced a wave of liquidations. This divergence is attributed to asymmetric leverage unwinding, signaling a potential market shift that could reshape trading strategies on platforms like Binance. As Bitcoin continues its upward trajectory, the altcoin market faces increased volatility, prompting investors to reassess their portfolios in this evolving landscape.

Bitcoin Diverges from Altcoins as Liquidation Patterns Signal Market Shift

Bitcoin’s trajectory has decoupled from the altcoin market, with CryptoQuant data revealing a breakdown in their historical correlation. Where BTC and altcoins once moved in lockstep with a 0.50-0.90 correlation coefficient, the relationship has fractured since late 2024. bitcoin surged past $100,000 by May 2025 while altcoins faced cascading liquidations.

The divergence stems from asymmetric leverage unwinding. Altcoin traders on platforms like Binance overextended long positions anticipating a seasonal rally that failed to materialize. Institutional capital continues flowing disproportionately into Bitcoin, reinforcing its dominance as speculative altcoin positions collapse.

Market structure now reflects a Darwinian selection process. Bitcoin’s institutional adoption and ETF inflows create self-reinforcing momentum, while altcoins suffer from evaporating retail leverage. The liquidation symmetry between BTC strength and altcoin weakness suggests deeper recalibration of risk appetites in digital asset markets.

HBAR Price Analysis: Bearish Pattern Emerges Amid Market Downturn

Hedera’s HBAR token faces mounting bearish pressure, sliding 6.51% to $0.1632 as trading volume paradoxically spikes 20.83% to $224.95 million. The altcoin mirrors broader crypto market weakness, shedding 14.63% weekly amid institutional capital outflows from products like BlackRock’s Bitcoin ETF.

Technical charts reveal a concerning Elliott Wave pattern, with HBAR currently trapped in corrective wave (c) after completing earlier waves (a) and (b). A critical resistance zone looms between $0.173-$0.179 on Binance’s HBAR/USDT pair, where price action shows consolidation fatigue after sustained declines.

The RSI’s sub-50 reading confirms weakening bullish momentum, though some analysts maintain guarded Optimism for long-term recovery. Market participants await either a decisive breakout above resistance or confirmation of extended downside.

|Square

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