Bitfinex Alpha #165 - Community Summary
BY BITFINEX COMMUNITY
Bitcoin Maintains Support While Leverage Builds Rapidly
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Or explore the key highlights from this edition below:
Bitcoin defended its short-term lows near $114,800 last week and rebounded sharply to close around $119,580.
A near 5% intra-week drop triggered over $1.1 billion in liquidations of long positions on major exchanges on July 23-24, exposing overheated speculative positioning during BTC’s recent all-time highs run.
Although the price correction was shallow, the impact on leverage was significant, highlighting the reflexive and fragile nature of crypto markets when speculative froth builds rapidly.
Altcoins faced heavy pressure, causing sharp declines in key market players such as XRP, Solana, Polkadot, and Cardano, each falling around 12%. Generally, this drop was driven by liquidations of high-volume speculative players in futures markets.
There is more risk appetite for altcoins, with Ethereum’s open interest dominance rising from 17% to 26%, while Bitcoin’s dominance fell to 41% from 51% in April.
The combined open interest in major altcoins like ETH, SOL, XRP, and DOGE surged from $26 billion to $44 billion in four weeks, signalling a strong return of speculative capital.
Despite Bitcoin’s structural support and steady ETF demand, the rising leverage concentration in altcoins heightens the risk of sharp deleveraging events, especially if macroeconomic factors worsen or momentum stalls.
US Economic Data Reveals Underlying Weakness as Institutional Crypto Interest Expands
US economic data reveals a mixed picture: business investment is slowing with durable goods orders down 9.3% in June and core capital goods down 0.7%, while Q2 GDP growth of 2.4% is driven mainly by temporary inventory and trade effects rather than true demand.
Jobless claims have dropped to a three-month low but continuing claims rose, suggesting challenges in rehiring amid tariff uncertainty and uneven demand.
Housing remains weak with minimal new home sales growth and high inventory levels.
The labour market is cooling but not collapsing, with the Fed unlikely to cut rates until clearer deterioration emerges.
On the crypto front, institutional treasury strategies focused on Ethereum and Bitcoin are expanding, with BitMine Immersion holding over 566,000 ETH and Ether Machine preparing for an IPO with 400,000+ ETH in yield infrastructure.
Trump Media’s $2 billion Bitcoin investment aligns with this trend, though concerns about revenue shortfalls and valuation dependencies on crypto price appreciation persist.
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