- S&P 500 has remained relatively unchanged.
- Popsicle Finance’s ICE has plummeted 22% in the last 24 hours.
On Friday, Bitcoin (BTC) was trading above $37,000, rising roughly 3% over the prior 24 hours. After a turbulent week, several altcoins have begun to stabilize.
Analysts searched for signs of a potential stock market rebound that could encourage renewed crypto buying. Over the past week the S&P 500 was essentially flat, while Bitcoin rose about 1% and Ethereum fell roughly 3%.
Investors continue to pull back from U.S. equities despite expectations for adjustments to the Federal Reserve’s fiscal and monetary stance. If that selling pressure continues, more investors may trim risky assets, and cryptocurrencies would likely be among the first affected. That dynamic could limit any near-term price recovery.
Macro challenges have some market participants worried about a repeat of 2017–2018 price swings. Bitcoin’s decline of more than 40% from its November high near $69,000 underscores that the market is currently in a cooling phase.
Is there systemic risk in the crypto markets?
The recent underperformance of several cryptocurrencies and decentralized finance (DeFi) tokens suggests heightened risk across crypto markets. In periods of elevated volatility, some traders shift capital into bitcoin, which is often viewed as relatively less risky within the crypto space.
Source – TradingView
Value of tokens linked to the Wonderland developer plunges
Popsicle Finance’s ICE plunged about 22% in the last 24 hours. Tokens associated with the Wonderland ecosystem also weakened: TIME fell roughly 15%, and Abracadabra’s SPELL declined around 15%. Coins connected to developer Daniele Sestagalli had attracted a committed community in recent months thanks to a community-centered approach to projects. At one point, those ventures managed billions in value, but much of that has since dissipated.