Kaiko: The wave of liquidations in February has reduced the leverage of altcoins, potentially paving the way for a more sustained bullish trend in the future.

According to TechFlow, on March 4th, a research report by Kaiko indicated that the market slump in February triggered several waves of liquidations, significantly reducing the leverage levels of the top ten altcoins. The analysis suggests that this position reset has created a healthier foundation for the cryptocurrency market, potentially paving the way for a more sustained upward trend in the coming weeks.

The report noted that although Bitcoin's reaction was relatively muted following the announcement of the United States' strategic cryptocurrency reserve plan, overall market volatility surged, particularly among altcoins. The intraday volatility, which had remained below 200% since the tariff sell-off in February, skyrocketed after the announcement, with ADA's volatility surpassing 600%, marking the largest increase among major altcoins.

Kaiko's analysis pointed out that the inclusion of specific altcoins in the U.S. strategic reserve could accelerate the rotation of capital among altcoins, reinforcing the trend of concentrated gains among them. Since November of last year, trading activity on U.S. exchanges has increasingly been dominated by large-cap assets. A year ago, the top ten altcoins accounted for 58% of altcoin trading volume on U.S. platforms, and 50% on offshore exchanges; as of last week, these shares have risen to 77% and 66%, respectively.