Crypto markets are facing significant downturns, with major altcoins like Solana, XRP, and Dogecoin losing over 5% of their value. Analysts attribute this retracement to cautious market sentiment amid thin summer liquidity and rising U.S. yields. Bitcoin remains stable, fluctuating within a tight trading range despite a series of liquidations exceeding $250 million daily for five consecutive days. The market conditions are seen as vulnerable due to excessive leverage in altcoins, leading to concerns about a potential liquidation cascade. Trading firms indicate that the crypto market may need to deal with these pressures for an extended period before gaining new momentum. The overall market sentiment reflects a lack of strong responses to positive news, indicating a late-cycle behavior among investors.

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