Global economic fluctuations trigger turbulence in the crypto market, BTC rebounds, and XCN experiences a big pump of 110%.

Macroeconomic Environment and Crypto Market Overview

Recently, the global economic environment has been affected by a series of uncertain factors, leading to increased volatility in financial markets. The repeated changes in tariff policies have raised market concerns about economic prospects, with a downward trend in U.S. Treasury bonds and the dollar exchange rate, while the U.S. stock market has shown extreme fluctuations. This instability has also impacted the crypto market, resulting in significant price volatility.

crypto market performance

This week, Bitcoin experienced a sharp rebound after a significant decline, but the overall market lacks clear leading hotspots. Some small-cap tokens have seen substantial declines due to delistings and other reasons. Among the top 300 cryptocurrencies by market capitalization, the biggest gainer is XCN, which rose by 110%; followed by some emerging tokens like FARTCOIN and GAS. The largest declines include BERA, EOS, and MEW, with drops between 20% and 40%.

It is worth noting that BERA, as a representative of the DeFi public chain, has seen a significant decline, breaking below its long-term support level, and its on-chain stablecoin scale has also seen a significant decrease. Meanwhile, FARTCOIN, as a meme coin in the Solana ecosystem, has risen against the trend amidst an overall market downturn. Additionally, the staking representative BABY in the BTC ecosystem has seen its market capitalization rebound to around $800 million after listing.

On-chain data analysis

From on-chain data, the inflow of funds into the Bitcoin market has come to a standstill. The liquidity of the entire crypto market is rapidly shrinking, with the total market capitalization of altcoins dropping from 1 trillion dollars at the beginning of the year to around 600 billion dollars. This decline seems to have affected all sectors, displaying a universal characteristic.

Institutional funds have seen a slight net outflow, reflecting the panic sentiment in the global market. The market value of stablecoins has also declined, indicating a significant risk-off sentiment among investors. The long-term trend indicator MVRV-ZScore is currently at a level of 1.6, nearing the bottom range, showing that the market is generally in a state of loss.

Futures Market Analysis

In the futures market, the funding rate remains at a low level, approximately 0.00%. The open interest in Bitcoin futures continues to decline, indicating that major market funds are withdrawing. The long-short ratio for futures is 1.9, showing that market sentiment leans towards greed, but the reference significance of this indicator has weakened.

spot market trend

Bitcoin has experienced significant fluctuations this week, while other cryptocurrencies lack new narrative drivers. The uncertainty surrounding U.S. tariff policies continues to exert pressure on global financial markets. This market weakness has spread to almost all asset classes, and the crypto market has not been spared from this bear market trend.

Overall, the current crypto market is in a challenging period, and investors need to closely monitor changes in the macroeconomic situation and the potential impact of various policy factors on the market.