Bitcoin Rebound altcoins big dump This week's crypto market data overview

Overview of the crypto market this week

Macroeconomic Environment

Liquidity in the currency market shows signs of improvement. Trump's tariff policy implementation has caused chaos, and regardless of how it ultimately plays out, it has quickly shaken market confidence in the U.S. economy, which is expected to continue affecting market trends over the next three months. U.S. Treasury bonds and the dollar have re-entered a downward trend, while U.S. stocks have experienced a historic surge, a situation that often occurs in the mid-term of a bear market. The crypto market has also followed suit with significant volatility.

Market Performance

This week, Bitcoin experienced an oversold rebound, while some small tokens plummeted due to delisting. The overall market lacks a clear focus or main theme.

Among the top 300 tokens by market capitalization, the largest increase is XCN, which rose by 110%; the largest decrease is BERA, which fell by 40%. Other outstanding tokens include:

• FARTCOIN: As a meme coin in the Solana ecosystem, it surged several times against the trend during the market downturn, becoming the leader of this round of rebound.
• BABY: As the leading staking token in the Bitcoin ecosystem, its market value has returned to the level of 800 million USD from the last round of institutional investment after being listed.

It is worth noting that BERA, as a DeFi public chain, has fallen to a new low, breaking the long-term support level. In the past week, its on-chain stablecoins have decreased by 300 million dollars.

On-chain data analysis

The inflow of funds into the Bitcoin market has come to a standstill. Market liquidity has rapidly contracted, causing the total market capitalization of altcoins to shrink significantly from $1 trillion at the end of 2024 to $600 billion. This decline is widespread, with almost all sectors experiencing significant depreciation.

Institutional funds experienced a slight net outflow, and a sense of panic is spreading across the global market. The market value of stablecoins has slightly decreased, reflecting a significant increase in investors' risk aversion.

The long-term trend indicator MVRV-ZScore is currently at 1.6, close to the bottom range. This indicator is based on the total cost of the market and reflects the overall profitability of the market. When the indicator is greater than 6, it indicates a top range; when it is less than 2, it indicates a bottom range. Currently, MVRV has fallen below the critical level of 1, meaning that holders are overall in a state of loss.

Futures market situation

The funding rate for this period remains at a low level of 0.00%. Generally, a rate between 0.05-0.1% indicates a higher long leverage, which may suggest a short-term market top; a rate between -0.1-0% indicates a higher short leverage, which may suggest a short-term market bottom.

The open interest in Bitcoin futures continues to decline, indicating that the main funds in the market are withdrawing. The long-short ratio in futures is 1.9, reflecting a market sentiment leaning towards greed. Generally speaking, retail sentiment is often a contrarian indicator; a long-short ratio below 0.7 indicates fear, while above 2.0 indicates greed. However, due to the high volatility of the long-short ratio data, its reference value is somewhat weakened.

Spot Market Dynamics

This week, Bitcoin prices have fluctuated dramatically, while the altcoin market lacks new narrative drivers. The uncertainty surrounding U.S. tariff policies has intensified, leading to increased pressure on global financial markets. This weakness has spread to almost all asset classes, and the crypto asset market is no exception, deeply mired in a bear market.