#Square
Crypto Market Consolidation Amid Liquidations
The crypto market is currently in a consolidation phase characterized by resilience despite earlier fragility. Following two months of uncertainty, Bitcoin has rebounded to $92,000, while the overall market capitalization reached $3.25 trillion. A recent $2 billion liquidation highlighted lingering risks, yet the market absorbed this shock without significant selling, indicating a shift from reactive liquidation to a more stable trading environment.
Investors are gravitating towards major cryptocurrencies like BTC and ETH, driven by selective risk-taking amid fading Nasdaq momentum. Focus is shifting towards upcoming decisions from central banks, particularly the Federal Reserve and the Bank of Japan, influencing market positioning. The current lack of appetite for altcoins suggests a preference for yield capture and capital efficiency, with the outlook remaining range-bound until macroeconomic developments prompt a decisive directional move.