Economic turmoil has led to significant fluctuations in the Crypto Assets market, with Bitcoin rebounding while alts fall.

Market Overview

Macroeconomic Environment

The global economic situation has been turbulent recently. The unpredictability of the Trump administration's tariff policies has brought uncertainty to the market and undermined investors' confidence in the U.S. economy. This impact may persist in the coming months. U.S. Treasury yields and the dollar exchange rate have both fallen, while the U.S. stock market has seen an unusual significant rise, a situation typically observed in the mid-term of a bear market. The cryptocurrency market has also experienced severe fluctuations.

Cryptocurrency market performance

This week, Bitcoin experienced a significant rebound after excessive declines, but small cryptocurrencies generally fell, especially those that were delisted by trading platforms. The market lacks a clear investment theme.

Among the top 300 cryptocurrencies by market capitalization, the largest gain is XCN, which rose by 110%; followed by FARTCOIN, which increased by 100%; GAS up by 60%; LAYER up by 40%; and UXLINK up by 30%. The largest decline is BERA, which fell by 40%; EOS, MEW, W, and NEAR all fell by 20%.

It is worth noting that:

1. BERA, as a representative DeFi public chain, has fallen below its long-term support level, with the on-chain stablecoin scale decreasing by $300 million within a week.
2. FARTCOIN is a meme coin within the Solana ecosystem, rising against the trend of an overall market downturn.
3. BABY is a staking representative in the Bitcoin ecosystem, with a market value returning to 800 million USD after listing, but the feasibility of the re-staking model is in question.

On-chain data analysis

The inflow of funds into the Bitcoin market has stagnated, and liquidity is rapidly shrinking. The total market capitalization of altcoins has shrunk from 1 trillion dollars at the end of 2024 to 600 billion dollars. This round of decline has affected all sectors, showing a widespread characteristic.

Institutional funds experienced a slight net outflow, and global market sentiment is trending towards panic. The market capitalization of stablecoins has slightly decreased, reflecting investors' risk-aversion sentiment.

The long-term trend indicator MVRV-Z Score is currently at 1.6, close to the bottom range. This indicator reflects the overall profit status of the market, and the current value indicates that holders are generally in a loss state.

Futures Market Situation

The futures funding rate remains low at around 0.00% this week. The futures open interest continues to decline, indicating that major funds are withdrawing from the market. The futures long-short ratio is 1.9, showing that market sentiment leans towards greed, but this indicator is highly volatile, making its reference value limited.

Spot market trend

Bitcoin experienced significant price fluctuations this week, while other cryptocurrencies lack new investment themes to support them. The uncertainty surrounding U.S. tariff policies has increased pressure on global financial markets, and this weakness has spread to almost all asset classes, with the cryptocurrency market also not being spared.