Cryptocurrency Market Sees Downward Trend as Investors Seek Alternative Assets

As reported by Omkar Godbole, the cryptocurrency market is experiencing a risk-off session, with Bitcoin's price nearing its June low. Over the past 24 hours, Bitcoin has declined by 3.5% to approach $85,208.46, while the CoinDesk 20 Index has dropped by 5%. Major altcoins such as ether and solana have also hit their lowest levels since August. The decline is attributed to various factors, including hawkish comments from Fed Chair Jerome Powell, a strengthening dollar index, and persistent selling from long-time wallets. Market maker Wintermute notes that despite expanding global liquidity, capital is not reaching the crypto market, with stalled ETF inflows and dried-up DAT activity. However, some privacy coins like Zcash, Decred, and DASH are experiencing a surge, with gains of up to 200% in 24 hours, as traders seek refuge in alternative assets. Meanwhile, the collapse of Stream Finance's stablecoin, xUSD, has resulted in a significant loss, and lenders are now earning over 500% daily interest, indicating potential trouble for the protocol's treasury. In traditional markets, the surge in credit default swaps tied to Oracle reflects investor concerns over the company's AI-related spending, while the dollar index has risen to 100 for the first time in months, complicating matters for bitcoin bulls.