NEAR, Worldcoin posts double-digit gains as market sees $714 million in liquidations

The cryptocurrency trend remains firmly in the risk-off zone Bitcoin It fell below $70,000 for the first time in eight weeks, but by little Alternative currencies She defied this recession and achieved double-digit gains.

Close to the protocol It rose 15% over 24 hours, according to CoinGecko data Worldcoin (WLD) and Internet computer (ICP) and gains hover near 12% and 11%, respectively.

Excess fluid It is trading near US$73, down 0.7% on the day and about 3% from its record high of US$75.46 set on Tuesday. The currency has risen by 125% in the past year, confirming its tremendous momentum.

This strong performance from select altcoins comes even as Bitcoin fell below the key psychological level of $70,000 to hit a local low of $69,034. It fell more than 4% in the past 24 hours, resulting in the liquidation of $728 million in leveraged positions, according to Coinglass data.

“Geopolitical factors lit the fuse for a sharp risk-off move, leading to a series of liquidations worth $650 million+ on June 1,” said Andriy Fozan Adzima, research leader at Bitrue Research Institute. Decryption. “ETF outflows have amplified them, with spot Bitcoin products bleeding billions in recent weeks as institutions rotate or offload risks.”

The difference between Bitcoin and altcoins

The difference between Bitcoin and altcoins is due to multiple factors.

Bitcoin is under pressure from headwinds including geopolitics, macroeconomics and a large influx of capital from exchange-traded funds, experts said. Decryption.

According to Tim Sun, senior researcher at HashKey Group, Bitcoin’s decline is driven by US Treasury yields, which suppressed market risk appetite, and the booming AI market, which created a liquidity withdrawal effect on crypto capital. “This has left the cryptocurrency market relatively weak due to a lack of new narratives and strong capital flows,” Son said. Decryption.

Sell ​​the strategy for 32 BTC This has amplified this bearish sentiment and added to the existing headwinds.

Meanwhile, Sun said altcoins’ gains “appear to be independently driven by their own ecosystems.”

NEAR Protocol’s recent gains can be attributed to privacy and AI-related developments. Decryption I mentioned. Injective is also riding a similar wave of artificial intelligence, Adziima said. While Worldcoin’s gains can be attributed to “whale buying, interest on derivatives, and adoption wins like live music tickets via World ID,” he said.

Approximately 97% to 99% of Hyperliquid’s revenue is put back into token buybacks via the Assistance Fund, which It affected positively Ecosystem and token holders. Although the token price has hit several record highs over the past week, the market cap only reached a new ATH on Tuesday, confirming the deflationary effect of the burn. Finally, the popularity of HYPE Token among institutions has increased significantly over the past month, and this is reflected in Continuous flows into HYPE ETFs.

In addition to individual fundamental developments, there are “commonalities,” according to Sun, who explained that “capital in the cryptocurrency industry is increasingly focused on assets with a clear narrative, real cash flow growth, and healthy supply structures.”

“These are not random pumps, these are convictions playing with real triggers in a sea of ​​beta,” Adzima said. “Capital is spinning aggressively in narratives of actual benefit, return, or technological advantage, which is exactly what I expect at this point.”

Looking forward

With capital exodus from ETF products, deteriorating macroeconomic policy due to the US-Iran war and rising energy costs, risk appetite in the cryptocurrency market remains almost non-existent.

“Even if a recovery occurs, we believe that a relatively weak and range-bound consolidation is the most likely scenario,” Son said. He noted that the bearish scenario for cryptocurrency markets would include a possible correction in US stocks, which are still high, adding that “these factors will all impact crypto assets, making it difficult for the cryptocurrency market to fully enter the phase of expanding risk appetite.”