Daily News | Bitcoin Continued To Fluctuate, Layer2 Led The Rise In The Altcoin Sector

Crypto Daily Digest: WLFI plans to launch a stablecoin, analysts say the concept of the Altcoin season may have disappeared

According to Farside Investors data, U.S. Bitcoin spot ETFs had a total net inflow of $26.8 million yesterday, of which BlackRock IBIT received an inflow of $42 million and Bitwise BITB received an outflow of $10.1 million.

Yesterday, the Ethereum spot ETF had an outflow of $3.3 million, and Grayscale ETH had an outflow of $1.8 million.

Trump family crypto project WLFI plans to launch stablecoin USD1

The Trump family’s crypto project World Liberty Financial Inc. (WLFI) officially announced plans to launch the stablecoin USD1, which can be swapped for US dollars at a 1:1 ratio and will be 100% backed by short-term U.S. government bonds, U.S. dollar deposits and other cash equivalents. It will initially be minted on the Ethereum (ETH) and Binance Smart Chain (BSC) blockchains, with plans to expand to other protocols in the future.

Opinion: Bitcoin rebound may fall into bull market trap

Trading expert Kirill Kretov recently warned: “Investors need to be extra cautious in the current environment: the market remains fragile and easily manipulated. Retail activity is low, trading volume is thin, and even the so-called “smart money” is on the sidelines. The forces that can really move the market choose not to do anything - this is no accident.”

According to CryptoQuant data, despite the rise in Bitcoin prices to $88,786 on Monday, its funding rate turned negative, indicating that traders are unwilling to pay a premium for opening new long positions in the perpetual contract market, and leverage demand is showing signs of cooling.

Analyst: The concept of Altcoin season may have disappeared

Well-known analyst Miles Deutscher pointed out that the rise of on-chain issuance platforms such as Pump.fun has restructured the market landscape. Speculative funds that should have been injected into mainstream copycat projects are now turning to low-market-cap meme coins on the chain on a large scale. The migration of capital has created a myth of getting rich quickly for early participants, but it has also trapped retail investors who chased high prices in a liquidity trap. Most on-chain meme coins have experienced a 70 to 80% halving after the surge, resulting in a wealth strangulation that is even more tragic than the LUNA crash in 2022. Political factors have fueled market volatility. Trump’s high-profile support for politically themed meme coins has caused market turmoil, but tokens such as TRUMP and MELANIA have plummeted by 83% and 95% respectively after listing, once again confirming the high risk of meme coins. The institutional entry brought by spot ETFs is also diverting funds from Altcoins. The approval of the Bitcoin spot ETF has brought a $129 billion capital siphoning effect. Some people believe that such highly liquid and highly regulated financial instruments are systematically diverting speculative funds from the Altcoin market. Altcoins no longer show the group characteristics of rising and falling together, and the so-called “Altcoin season” concept may have quietly disappeared.

Market Trends: Bitcoin continued to fluctuate, while Altcoins saw a general rise

Market Hotspots

The TVL of the RWA sector exceeded $11 billion, a record high, with a 7-day increase of 7.23%, setting a record high, becoming the seventh sector in the DeFi field to enter the $10 billion scale. Maker RWA, BlackRock BUIDL, Ethena USDtb and Ondo Finance TVL all exceeded $1 billion.

The market cap of USDC, the stablecoin issued by Circle, has exceeded $60 billion, a record high. The increase in the supply of USDC in the past few months highlights the fierce competition in the stablecoin market.

Mainstream Coins

BTC fluctuated upward, reaching $88,000 and then falling below it. Currently, BTC has reached the key rebound resistance level. From the perspective of the pattern, it has fallen below the key point and is still in a falling range. If it fails to break through in the short term, it may face another correction.

ETH is still fluctuating around the $2,000 mark. Judging from the ETF inflow and outflow data, the market outlook is still not too optimistic.

Altcoins generally rose. The Layer2 sector led the rise by 5.23%. Within the sector, Movement (MOVE) rose 33.35% in 24 hours, ex-MATIC (POL), ImmutableX (IMX), Stacks (STX), and Polygon (MATIC) rose 7.10%, 7.35%, 6.27%, and 7.60%, respectively.

Macro News: U.S. stocks continued to be optimistic, S&P and Nasdaq closed slightly higher

U.S. stocks continued to be optimistic about the easing of tariffs on Tuesday. Although the three major U.S. stock indexes turned to decline at one point, the S&P 500 and Nasdaq closed slightly higher.

There has been a noticeable decrease in news that Trump may impose additional tariffs. Reports say the Trump administration is considering a two-step tariff strategy against trading partners, first using rarely used emergency powers to immediately impose tariffs, while also launching a formal investigation into trading partners.

However, there were signs of deterioration in the “soft data”. The Philadelphia Fed’s services survey index fell to its lowest level since the outbreak, and the Conference Board’s consumer confidence index fell for four consecutive months, worsening recession expectations. In particular, the expectations index fell to 65.2, a 12-year low, well below the key threshold of 80 that indicates an economic recession. Short-term inflation expectations rose to 6.2%, and nearly half of consumers expected the US economy to fall into recession.