Bitcoin Updates: Bitcoin Holds Steady While Altcoins Struggle in Downward Trend
- Bitcoin maintains neutral funding rates near 0.01%, while altcoins fall below 0.005% as bearish pressure intensifies. - Market divergence stems from Bitcoin's stability amid macroeconomic uncertainty and altcoins facing speculative selling pressure. - Geopolitical tensions and U.S. government shutdown drive risk-off sentiment, pushing investors toward Bitcoin as crypto's safe haven. - Altcoin bearishness worsens with regulatory uncertainties and capital shifting to high-growth DeFi projects like Mutuum F
There is a clear split in sentiment within the cryptocurrency sector between
Funding rates are used to keep perpetual contract prices in line with spot prices and are a key gauge of trader sentiment. Rates above 0.01% typically point to bullish expectations, while those under 0.005% reflect bearish attitudes. The current scenario highlights a split: Bitcoin’s steady footing stands in stark contrast to the worsening situation for altcoins. This gap is largely due to Bitcoin’s resilience during periods of broader market instability, whereas altcoins are experiencing heavier selling pressure, driven by speculative trading and challenging macroeconomic conditions.
Coinglass data shows that the bearish trend for altcoins has grown stronger following a brief two-day recovery. This pattern matches the overall market turbulence, influenced by factors such as geopolitical unrest and the U.S. government shutdown, which have increased risk aversion. Investors are turning to Bitcoin as a relative safe haven in the crypto market, even as its funding rate remains steady, according to a
For market participants, the widening gap in funding rates is a warning sign. Altcoin positions are being closed out more rapidly, with perpetual contracts facing greater risk of liquidation. On the other hand, Bitcoin’s neutral funding rate suggests that traders are refraining from making bold long or short moves, instead opting to wait for major developments like the Federal Reserve’s policy announcement or the Trump–Xi summit, as highlighted by BlockBeats. The steady funding rate for Bitcoin also implies that its price is holding up well against economic headwinds, reinforcing its role as a benchmark in the digital asset space.
The negative outlook for altcoins is being worsened by ongoing regulatory challenges and waning confidence in smaller-cap tokens. For example,
As the market contends with this split environment, attention remains fixed on Bitcoin’s trajectory and major economic events. A dovish stance from the Federal Reserve or positive developments from the Trump–Xi talks could give Bitcoin a short-term lift, potentially driving its price higher. Conversely, renewed geopolitical strife or tighter monetary policy could deepen the bearish trend for altcoins, with Bitcoin’s neutrality providing some stability.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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