Mainstream coins decline across the board, while small-cap tokens surge? Market rotation signals emerge after $1.7 billion liquidation wave

GateNewsBot
BTC-0,68%
ETH-3,14%
SOL0,67%
SENT-2,65%

January 30 News, after experiencing approximately $1.7 billion in leveraged liquidations and macroeconomic shocks, the prices of Bitcoin, Ethereum, and Solana have stabilized, while a batch of micro cryptocurrencies have defied the trend and strengthened. The market shows clear divergence, with small-cap tokens beginning to outperform mainstream assets, indicating that short-term funds are seeking new trading opportunities.

Data shows that several micro tokens ranked among the top gainers for the day: Sentient (SENT), an AI concept token, rose nearly 13%, with trading volume increasing; Oasis Network’s ROSE also gained about 9%, becoming a representative of the privacy and data sharing sector. A DeFi portfolio manager pointed out that this is a typical “risk rotation,” with funds shifting from previously pressured mainstream coins to smaller market cap assets with deeper declines and higher volatility.

Meanwhile, blue-chip cryptocurrencies remain range-bound. Bitcoin hovers around $82,700, with high trading volume but no clear direction; Ethereum fluctuates around $2,800, with increased volatility; Solana remains steady at around $115, with strong hedging demand in the options market against downside risks. The consolidation of mainstream assets reflects that macro uncertainties continue to suppress overall risk appetite.

Analysts believe that the recent strength of micro coins is more like a short-term speculative capital release rather than a trend reversal. Previously, ETF-related sell-offs and deleveraging actions have weakened market stability. The current divergence may signal the brewing of next-phase volatility: once mainstream assets regain direction, the high volatility of micro coins could amplify price swings.

For traders, the current market presents both opportunities and higher risks. The stabilization of mainstream coins combined with active micro coins forms a “cautious yet speculative” landscape in the cryptocurrency market.

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