The domination of Bitcoin (BTC.D) increased this week above 64%, and its highest level from March 2021, withdrawing with a debate about the upcoming brief squeeze, which could send Skyward price. The Stark warning comes from Joe Consorti, the boss of growth in IHE, who started to X on Monday to outline what he considers a decisive turning point for Bitcoins compared to the rest of the digital assets market.

Historical break in Bitcoin correlation patterns

In his postConsorti claims that Bitcoin’s last price means for the first time in a 16-year history that both its price and market dominance increased in tandem. Historically, the domination of Bitcoins would initially enhance, but would disappear when speculation spilled into altcoins. However, Consorti states: “For the first time in history, Bitcoin’s share in the total digital asset market is growing, and its price rises. In previous cycles, speculation based on retail speculation increased the price of bitcoins, and later transferred money to the Altcoins, causing a decrease in the domination of bitcoins. This dynamics has disappeared. “

According to Consorti, the days when the wide Altcoin rally would follow the initial growth of Bitcoin seem to end. The domination of the Bitcoins recently affected 64%-the other level from February 2021, largely ignoring the rest of the market. “

Last week, market turbulence meant that Consorti is called “the largest liquidation event in the” cryptographic “history, citing data that over $ 2.16 billion of dollars position was destroyed within 24 hours. Ethereum led the number of liquidations with $ 573 million and the largest single liquidation – $ 25.6 million order ETH/BTC – on Binance. “As you can guess, ETH/BTC is not great, Consorti notes, indicating that the ETH/BTC pair is trading at 0.026 – it is the lowest level in over three years.

He claims that these liquidations emphasize the uncertain nature of heavily used Altcoin markets: “Everything erased at an instant when the price changed with them. This was not your standard technical correction, means the beginning of the event at the level of extinction for Altcoins. “

“Altcoin Casino” in crisis

Consorti analysis suggests that what he calls “Altcoin Casino”. It points to unsuccessful narratives about popular projects – Ethereum, Solans and DEFs among them – which fought for the trust of investors: “Altcoins survived only on narratives. Each cycle has appeared a new batch of narrative, promising innovation that changes the world. None of them lasted. “

This contrasts with the basic proposal of Bitcoin values, which in his opinion does not require marketing: “Bitcoin on the other side does not need a narrative. I don’t need marketing or noise. It exists and develops because it was built to do one thing – to cause wealth in the world of eternal monetary expansion. “

Consorti also refers to the “merging” of Ethereum and his alleged deflating project, indicating that since the update the total supply of ETH has increased by 13 516 ETH-Z participation of the claim for “Ultra is the money”.

By adding a policy dimension to market transformation, Consorti emphasizes the statement of Senator John Boozman during the first press conference of the Crypto Crypto working group: “Some digital assets are goods, some are securities.”

It suggests that this is a still confirmation that Bitcoin stands out from other digital assets. In further development, Consorti cites a comment from AI of the White House and Cryptography, David Sacks, who mentioned that the group assesses the profitability of the Bitcoin strategic reserve- the transition from the previous terminology “National Digital Asset” used as part of Trump Executive Order Era.

The consortia defines this as “main development”, which signals the growing recognition of the unique properties of Bitcoin: “This language change is monumental. A few years ago, the US government was open to Bitcoin. Today they discuss him in stock. “

Among this shock, Consorti suggests that another dramatic move in Bitcoin can be an explosive brief squeeze. He notes that the rates of financing eternal Futures have become “deeply negative”, reminding when Bitcoin sold nearly $ 23,000 in August 2023. This implies the tilt towards traders betting Bitcoin – a position that can quickly relax: “during When the lever is wiped most of the long positions last week, the next serious traffic can be the opposite – an explosive rally driven by forced short liquidations. “

If the market turns with these brief sellers, forced redemption can enhance the price at unusual speed and size-especially if the overall liquidity remains gaunt. He came to the conclusion: “Traders who excessively used their lever for short bitcoin will eventually have to buy it back when the price moves with them, as last week will be erased last week. Bitcoin is rolled up. The stage is set for a potential short squeeze. The longer this dynamics of short domination persists, the greater the risk of a liquidation cascade forced shirt, which sends the price of bitcoin higher with force. “

During the BTC.D press it amounted to 61.19%.

A distinguished painting created from Dall.e, chart from tradingview.com