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Bitcoin faces test holding $62,500 as altcoins retreat

Altcoin market capitalization recovered to $983.8 billion on July 17 after falling to $976.3 billion on July 16, but remained $8.8 billion below its July 10 level.

Reported · Written up by our desk · Market Structure

Bitcoin traded near $62,500 to $64,300 heading into the weekend, with the $62,500 area described as the market’s clearest near-term threshold. CryptoSlate said the test is also tied to whether Ethereum and other large altcoins, including HYPE, can stop sliding as the broader market narrows the gap.

Altcoin market capitalization fell to $976.3 billion on July 16 before recovering to $983.8 billion on July 17, leaving it $8.8 billion short of the $992.6 billion level recorded on July 10. Altcoin dominance rose from 20.55% to 21.40% over the same period but did not reach the 21.76% share it held a week earlier.

The selloff weighed heavily on HYPE after it hit an all-time high near $77 on June 16, with the token down more than 10% during the same sessions that saw Bitcoin dip under $63,000. A research analyst at Bitget Wallet, Lacie Zhang, attributed the divergence to a macro and positioning shock in which Bitcoin is treated as cleaner institutional collateral, while Ethereum and altcoins carry more exposure to DeFi borrowing and broader risk appetite.

CryptoSlate also pointed to a link between the crypto drawdown and a broader equities drop, noting the Philadelphia Semiconductor Index has fallen close to 24% from its late-June peak after disappointing earnings guidance from Samsung and SK Hynix. In ETF flows, US-traded spot Bitcoin ETFs collected $79.1 million on July 16, following a $424.7 million outflow on July 13, while Ethereum ETF activity moved in the opposite direction on the latest days cited.

Latest closeBitcoin $63,950.42 ▲0.1%|Ethereum $1,842.90 ▲0.1%

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