TechFlow news, March 4 — According to a Kaiko research report, the market downturn in February triggered multiple waves of liquidations, significantly reducing leverage levels across the top ten altcoins. The analysis suggests 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 while Bitcoin's reaction remained relatively muted following the U.S. announcement of plans to establish a strategic cryptocurrency reserve, overall market volatility surged—especially among altcoins. Hourly intraday volatility, which had remained below 200% since the February sell-off driven by tariff concerns, spiked after the announcement. ADA’s volatility exceeded 600%, marking the largest increase among major altcoins.
Kaiko analysis indicates that the potential inclusion of specific altcoins in the U.S. strategic reserve could accelerate capital rotation among altcoins, reinforcing the concentration trend in altcoin price gains. Since last November, 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 figures had risen to 77% and 66%, respectively.
