- Whales increased their activity in AAVE and Lido Dao’s LDO, fueling massive price rallies in the altcoins.
- Bitcoin price climbed above $30,000, liquidating millions of dollars in short positions.
- BTC dominance declined, paving the way for the “alt season” narrative.
Bitcoin and Ethereum prices climbed earlier this week, crossing psychological barriers and kicking off the “alt season,” according to experts. Bitcoin dominance experienced a pullback, while the asset rallied, liquidating short positions.
Whale activity fueled AAVE and LDO price rallies
While a surge in large wallet investors' activity is associated with mass profit-taking, in the case of AAVE and LDO it triggered a price rally. The two altcoins yielded 4% and 6% gains for holders since Thursday respectively.
Analysts at crypto intelligence tracker Santiment identified a spike in transaction volume by large wallet investors and notified traders of likely volatility in asset prices. In the case of ApeCoin, a surge in whale activity triggered a pullback, while for AAVE and LDO, it pushed price higher.
Read more here: ApeCoin, AAVE and Lido Dao witness surge in whale activity, here’s what this means for price
Bitcoin price continued its uptrend, driving further liquidations of short positions
BTC price yielded gains for holders fueled by the shifting macroeconomic outlook and the bullish sentiment among crypto market participants. BTC’s run up to $30,000 sparked liquidations in short positions.
Analysts at @52kskew noted 6,000 BTC in shorts were liquidated.
$BTC Binance Open Interest
— Skew Δ (@52kskew) April 14, 2023
6k BTC in shorts blown out here too
Funding starting to reset back to neutral (shorts were indeed the crowded trade) https://t.co/OlZWOgmCCP pic.twitter.com/528wWGz0Ae
Read more: Bitcoin price rally likely to continue with open-interest hitting five-month peak
Alt season narrative gains prominence with pullback in Bitcoin dominance
The “alt season” narrative is the rotation of capital from Bitcoin to altcoins. Experts were concerned regarding the alt season with Bitcoin’s rising dominance. However, the recent pullback in BTC dominance fueled a bullish sentiment among experts, making alt season narrative relevant yet again.
Find out more: Experts believe altcoins can get devalued with Bitcoin’s rising dominance
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