The cryptocurrency market is currently stuck in a range, with Bitcoin still attempting to rise above the crucial $90k mark. Meanwhile, the majority of altcoins are trying to recover from recent losses. Experts are noticing an interesting shift, as altcoins begin to break trends and take the lead. For months, Bitcoin was the dominant force, but as it slowed down, altcoins started to drive the market’s correction.
However, Matt Bartolini, head of SPDR Americas Research at State Street Global Advisors, recently discussed risks facing the markets, especially in light of the current economic climate. Here are three key reasons why markets may be turning bearish:
Weakened Consumer Confidence: Consumer confidence dropped to its lowest point since 2021, hitting 92.9 in March. This suggests that Americans are feeling uneasy about the economy, and if spending slows down, it could hurt the market, especially in the consumer sector. Consumer discretionary stocks in the S&P 500 are down 9% this year, compared to a 2% decline in the overall market.
Bearish Positioning in Consumer Discretionary: There are signs of a bearish outlook in the consumer discretionary sector, with $800 million in outflows in March alone. Options data also shows a higher number of puts compared to calls, and short interest is rising. A lot of this bearish sentiment comes from poor performance in stocks like Tesla and broader economic factors.
Uncertainty in Economic Data: Worries over inflation and weak economic data, like GDP forecasts from the Atlanta Fed, are also affecting market sentiment. While some sectors, like healthcare and insurance, are doing better, overall economic challenges and tariff impacts are making investors more cautious. However, banks are benefiting from widening interest margins and have seen positive inflows.
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“This was due to an entity(s) on the Binance perpetuals market. That’s what triggered the entire cascade. The initial drop below $5 was triggered by a ~1 million USD short position being market-sold. This caused over 5% of slippage in literal microseconds. That was the trigger. This seems intentional to me. They knew what they were doing,” the analyst stated.
Pi Network: From Chainlink Buzz to Transparency Fears
Pi Network recorded strong optimism this week as its native Pi Coin surged by double digits. BeInCrypto attributed the surge to the announcement of a key integration with Chainlink.
They pitched this strategic collaboration as a gateway to real-world utility. Specifically, it positioned Pi closer to the broader DeFi and smart contract ecosystem. However, the euphoria proved short-lived.
Allegations suggest that, like the OM token, Pi coin lacks full clarity around circulating supply, wallet distribution, and centralized control. To some, these are potential red flags in an increasingly regulation-sensitive industry.
“The OM incident is a wake-up call for the entire crypto industry, proof that stricter regulations are urgently needed. It also serves as a huge lesson for the Pi Core Team as we transition from the Open Network to the Open Mainnet,” wrote Dr Altcoin.
Pi coin reversed gains within days, falling 18% from its weekly high. At the time of writing, PI was trading at $0.6112, up by a modest 0.7% in the past 24 hours, per CoinGecko.
Grayscale’s Altcoin Shake-Up: 40 Tokens Under Review
This week in crypto also showed that institutional investor interest in altcoins is heating up again, with Grayscale leading the charge.
The digital asset manager unveiled its updated list of assets under consideration for the second quarter (Q2) 2025. BeInCrypto reported that the list featured zero altcoins across sectors such as DePIN, AI, modular blockchains, and restaking. Among the notable tokens being eyed are SUI, STRK, TIA, JUP, and MANTA.
The update reflects Grayscale’s growing thesis around emerging crypto trends, particularly as the firm seeks to expand beyond its core Bitcoin and Ethereum products.
This announcement follows a broader strategic overhaul from three weeks ago when Grayscale reshuffled its top 20 list of altcoins by market exposure. Several older names were dropped at the time, while newer narratives like Solana-based DePIN and Ethereum restaking plays were pushed to the forefront.
The expansion into 40 coins signals Grayscale’s recognition of renewed retail and institutional appetite for differentiated assets. However, inclusion in the list does not guarantee a fund launch. It only indicates Grayscale’s active research.
XRP and SWIFT Partnership: Breaking Down the Rumors
There was speculation this week about a possible partnership between Ripple’s XRP and banking giant SWIFT in crypto.
This narrative was based on a misinterpreted document. A series of cryptic social posts exacerbated the speculation, which some took as confirmation of collaboration between the global payments network and the XRP ledger.
However, BeInCrypto’s in-depth reporting sank the rumors. While Ripple has long pursued banking institutions and SWIFT has shown openness to blockchain innovations, there is no verified partnership between the two.
SWIFT’s public-facing projects around tokenization and digital asset settlement do not include XRP.
Despite the debunking, the rumors sparked an important conversation about XRP’s long-term positioning. The token remains a top-10 asset and a favorite among retail investors banking on utility-driven price appreciation.
With Ripple’s legal battles with the SEC nearing resolution and international CBDC partnerships in the works, the project is far from irrelevant.
US Dollar Dives: What the DXY Crash Means for Bitcoin
The US Dollar Index (DXY) hit a three-year low this week, sending ripples through the crypto markets. Historically, a falling DXY has been bullish for Bitcoin, and this week was no different, with BTC reclaiming above the $84,000 range.
The greenback’s weakness reflects growing fears of fiscal deterioration in the US, as rate cuts loom and Treasury debt soars.
Japan’s 10-year bond yields hit multi-decade highs, forcing the Bank of Japan (BoJ) into increasingly precarious interventions. As Japanese liquidity spills outward, crypto and risk assets have become inadvertent beneficiaries.
This macroenvironment is ideal for Bitcoin. Weakening fiat, rising global liquidity, and crumbling bond market confidence create a perfect storm.
Shiba Inu (SHIB) price is rangebound in a tight accumulation zone after breaking out of a downtrend. With a massive spike in exchange outflow, the chances of an explosive SHIB rally are not unlikely. Here are some key levels to watch where investors can accumulate this dog-based meme coin.. SHIB Outflow Suggests Accumulation Data from CryptoQuant suggests total SHIB transactions also increased from 6,200 to 7,510. Yet despite the surge in activity, the token’s price remained unmoved. Shiba Inu total transaction count 1 – week chart Historically, a divergence like this with a spike in transaction count and flat price action points to one of two scenarios – accumulation or distribution. An accompanying chart of SHIB’s exchange netflow underscores a bullish case (accumulation). Shiba Inu posted a negative exchange netflow of 111.8 billion tokens on May 20, suggesting a large-scale transfer of the asset from exchanges into self-custody or cold… Read More at Coingape.com
