Analysts say recent market behavior suggests crypto may be entering a new phase—one where fundamentals, not liquidity cycles, are increasingly determining performance. XRP/BTC and ETH/BTC cross pairs have remained unusually stable, and the top-20 leaderboard has barely shifted despite pressure on bitcoin, signaling a more selective market rather than the start of a broad altcoin rotation.
Bitcoin briefly fell below $90,000 earlier this week, a move that would typically trigger sharp declines across altcoins. Instead, the broader market held steady. Cross pairs maintained their ranges, and major tokens showed little change in relative ranking—an uncommon outcome during a deep BTC pullback.
Singapore-based market maker Enflux told CoinDesk that this muted reaction is one of the strongest signs that crypto is separating from the liquidity-driven patterns that once defined each cycle.
“Majors without clear revenue, utility, or institutional relevance have already dropped 60–80%,” the firm said. “The vertical rotations of 2017 and the leverage-fueled surges of 2021 depended on narratives, cheap liquidity, and retail mania. Those ingredients simply aren’t present in meaningful size this cycle.”
Enflux added that tokens backed by staking demand, ETF flows, or real-world usage are showing greater resilience.
Bizantine Capital partner March Zheng said the firm is closely watching the relative positions of the top twenty assets rather than absolute prices.
“Historically, steep bitcoin drawdowns cause heavy deterioration in altcoins,” Zheng said. “This time, the range has held steady. That points to a more balanced structure and not a classic alt season.”
Zheng believes this stability suggests the market is gravitating toward a more orderly, fundamentals-aligned hierarchy instead of rotating through speculative narratives.
Overall, the signals point to a market that is actively differentiating between assets with real users, revenue, or institutional demand and those that represent higher-risk beta. Stronger tokens continue to hold up; weaker majors are absorbing most of the pressure.
The broader question is whether this fundamentals-first dynamic will persist as the cycle develops.
Market Movement
- BTC: Hovering near $92,234 after rebounding from its dip below $90,000.
- ETH: Trading around $3,099 as market conditions stabilize.
- Gold: Down for a fourth straight session to $4,064.60/oz as traders scale back expectations for a December U.S. rate cut—now roughly 50%, down from nearly 94% a month earlier.
- Nikkei 225: Asia-Pacific stocks traded mixed Wednesday, though Japan’s index climbed 0.5% despite tech-led weakness in the U.S. sparked by AI valuation concerns.
Elsewhere in Crypto
- Pump’s “Mayhem Mode” has yet to lift token launches or revenue in its first week (The Block).
- Robinhood unveils a three-phase “Permissionless Assets” tokenization strategy targeting disruption in traditional finance (CoinDesk).
- Coinbase clarifies details surrounding its donation to Trump’s ballroom (Axios).
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