Crypto Markets Today: Privacy Tokens Shine, Majors Stall as Market Consolidates
The crypto market shows minor consolidation as Bitcoin (BTC) and Ethereum (ETH) declined by less than 1%, while privacy coins like Decred (DCR) surged 22%, and DASH and Monero (XMR) also outperformed. The overall market cap decreased by 0.6% in the past 24 hours but remains above the early-November lows. Increased volatility and thin liquidity signal potential for sharp price movements. In the U.S., anticipation of the government shutdown resolution may influence crypto policy and price trends. Derivatives markets show mixed activity with BTC and ETH future funding rates subdued and bearish sentiment prevailing in near-term options. Altcoins exhibited indecision with a 22% gain in Decred, alongside a notable 20% rise in Canton Network's native token (CC), while major tokens like Ether, XRP, and BNB declined 1%-2%. Market sentiment is trending into fearful territory at 26/100 on the fear and greed index, suggesting potential for price rebounds.
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Market Consolidation Overview
The crypto market continued to consolidate on Wednesday with major cryptocurrencies such as Bitcoin (BTC) at $105,051.08 and Ether (ETH) at $3,549.99, both losing less than 1%. Meanwhile, privacy tokens like Decred (DCR) surged by 22%, and others like DASH and XMR extended their market outperformance.
The overall crypto market cap has declined by 0.6% in the past 24 hours to $3.51 trillion, though it remains higher than November 7, when it dropped as low as $3.32 trillion. The increase in market volatility suggests liquidity challenges persist after last month's leverage-induced blowout, leaving the market sensitive to sudden news-driven price swings.
U.S. Government Shutdown's Impact on Crypto
Investors' focus remains on developments in the U.S., as the government shutdown reportedly approaches its final stages. A resolution of the shutdown could accelerate crypto policy adjustments and strongly influence price movements in the market.
Derivatives Market Trends
The Volmex BVIV index, which tracks 30-day implied volatility in Bitcoin, maintains elevated levels around 50%, signaling expected price turbulence. This stems from thin liquidity, macroeconomic uncertainties, and heightened interest in put options.
Futures activity is mixed: tokens like HYPE, BCH, and SOL saw 1%-2% growth in open interest (OI) in the past day, while ETH, XRP, and BNB faced declines.
Annualized funding rates for BTC and ETH remain below 2025 averages, indicating limited demand for leverage. On the CME, the annualized three-month basis for SOL futures dipped to 7%, its lowest since July, now in line with BTC and ETH futures. On Deribit, options activity suggests a bearish outlook, with notable BTC put spreads sold in December contracts and call options tied to Ether prices ($4,000-$7,000) seeing buying interest.
Altcoin Market: Signs of Indecision
The altcoin market exhibits indecision after a highly volatile period. Prices rebounded from Friday's support levels to relative safety by Monday. Privacy coins continue their stellar performance, with Decred (DCR) posting a 22% gain, and DASH and Monero (XMR) seeing solid upticks in the past 24 hours.
Additionally, a 20% surge was observed for Canton (CC), the native token for the Canton Network blockchain, which is designed for institutional use and supported by major banks.
However, the broader altcoin sector showed weakness: Ether (ETH), XRP, and BNB dropped 1%-2%, while Solana (SOL) fell further with a 3.6% loss.
Market Sentiment Analysis
The average relative strength index (RSI) on CoinMarketCap stands at 51.26/100, suggesting the market is neither oversold nor overbought, awaiting a catalyst to drive significant price action.
Meanwhile, the Fear and Greed Index has slid into fearful territory at 26/100, a level it has rarely reached over the past year. Historically, such low levels have led to notable market bounces, such as those seen in March.