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Altcoins Slide as Traders Brace for Extended Crypto Volatility
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Altcoins weakened amid lighter trading and liquidations, showing short-term caution though accumulation by long-term holders signals lasting conviction.
Volatility resurfaced across crypto markets as altcoins underperformed Bitcoin, extending a two-day correction phase. Coins tied to AI projects saw sharper declines, reflecting cautious sentiment toward tech-linked assets. Trading volumes thinned on major exchanges as investors awaited fresh economic cues from the US and Europe. Analysts highlighted that leveraged positions in DeFi protocols triggered automated liquidations. Still, long-term holders continued accumulating at lower levels, suggesting confidence in structural adoption. The overall crypto capitalization contracted 3% intraday, underscoring fragile near-term risk appetite across speculative assets.