Recently, while monitoring the market, I noticed an interesting phenomenon: the overall crypto market is weakening. Bitcoin is currently trading around 72.94K, and its gain over the past 24 hours is only 1.64%. This is mainly due to pullbacks in the US tech sector and precious metals, and risk sentiment has clearly cooled down. In particular, the correlation between Bitcoin and Nasdaq has shifted from negative to positive, suggesting that the linkage between crypto and tech stocks is getting tighter, and they are no longer as independent.

The altcoin space looks even worse. Although well-known meme coins like PEPE, DOGE, and TRUMP haven’t completely collapsed, they’re still under overall pressure. PEPE is up 3.47% right now, DOGE is only +1.34%, and instead TRUMP is down 2.66%. That said, there are also bright spots: MORPHO is up 22.65% this week, and ZEC is even stronger—up 59.89% outright. It looks like the market is still looking for some new opportunities.

Looking at derivatives, futures open positions have seen a large outflow, and a sizable amount of leveraged positions were liquidated over the past 24 hours, mainly because the longs were wiped out. DOGE’s open interest is down 4%, and other major coins have also been falling. Interestingly, HYPE is up 5.51% now, and ZRO has also rebounded to +5.97%, suggesting that the sell pressure from earlier may have been released for the most part.

In terms of market sentiment, the fear index has already pulled back quite a bit from its peak, but put options are still more expensive than call options, indicating that people are still a bit concerned about what comes next. This round of crypto correction is mainly following the pace of the US tech sector. We’ll just have to wait and see when a new upside catalyst will show up.