Morning minute: Bitcoin crashes, then bounces back

Morning Minute is a daily newsletter written by Tyler Warner. The analyzes and opinions expressed are his own and do not necessarily reflect those of Decrypt. Subscribe to the Morning Minute on Substack.

GM!

Today’s most important news:

• Crypto Majors Rebounded After Friday’s Selloff; BTC at $86,000
• Coinbase acquired Vector dot Fun from TNSR
• Monad presale 1.43x oversubscribed; token and mainnet are live today
• Hyperliquid’s growth mode initiative to reduce fees by 90%
• The MegaETH predeposit campaign starts tomorrow

💥 Bitcoin crashes and then bounces back

A brutal sell-off on Friday turned into a weekend revival.

How bad was it?

📌What happened

Friday started with panic.

Bitcoin fell below $86,000 and then fell below $81,000 before stabilizing.

At one point, the market saw more than $1.7 billion in liquidations, one of the largest bankruptcies of the year.

Then things turned around.

Bids started appearing again until late Saturday and Sunday.

BTC crawled back above $87,000, ETH stabilized and even the hardest-hit alts were in the green.

As the dust settles this morning, here are current prices and their 30-day percentage change.

Bitcoin at $86,000 (-23% over the month)

• ETH at $2,800 (-29%)
• XRP at $2.05 (-20%)
• BNB for $840 (-25%)
• Solana for $129 (-33%)

One of the worst months since 2022. And now that the dust has settled, the total cryptocurrency market cap is now below $3 trillion – down from $1.3 trillion in the last seven weeks.

🧠Why it matters

Friday was the kind of breakout that shakes people out of the market.
But there are some reasons for optimism:

• On Friday, the ETFs turned green again
• Stablecoin outflows slowed just as BTC stopped falling
• Alts showed that they still have buyers if BTC stabilizes

Most importantly, the weekend rebound has proven that there is still a lot of real demand waiting for discounts.

That doesn’t mean the volatility is over. Far from it.

But there are several indicators and statistics that show that Bitcoin and broader crypto are currently more oversold than they have been since the most extreme bear market conditions.

This week will tell. If prices stabilize, it will be a sigh of relief for most. But as selling picks up again, it will become clearer that a real bear market may be in sight.

We’ll find out soon enough.

🌎 Macrocrypto and memes

A few Crypto and Web3 headlines that caught my attention:

• Crypto Majors Are Slightly Red After a Weekend Rally Cools Down; BTC -1% at $86,000; ETH -1% at $2,800, BNB -1% at $840, SOL -1% at $129
• CC (+12%), XDC (+3%) and AAVE (+3%) top movers
• Crypto fear and greed has been in Extreme Fear for 12 days now
• Coin base bought Tensor’s Vector dot Fun team, transferring the TNSR token to the foundation
• Satoshi Nakamoto’s estimated BTC fortune fell by about $41 billion during Friday’s selloff
• Zcash Developers detailed preparations for quantum threats, wrangling over protocol design and upgrade paths left ZEC better positioned than Bitcoin for a future cryptographic transition
• Cardano’s network suffered a “poisoned” transaction attack that caused a chain split
• Crypto industry lobbyists hosted a private dinner on tax policy for lawmakers, pushing for friendlier tax treatment on digital assets alongside the broader fight against the Market Structure Act
• Jack Mallers (CEO of the strike) shared that JPMorgan closed his bank accounts and would not give him an explanation

In corporate bonds/ETFs

In Memes / Onchain movers

• Memecoin Leaders are mixed led by Fartcoin; DOGE +1%, Shiba -1%, PEPE +1%, PENGU -1%, BONK +1%, TRUMP -3%, SPX +3% and FARTCOIN +8%
• WOJAK (+40%), FWOG (+20%) and AVICI (+27%) were notable movers

💰 Token, airdrop and protocol tracker

Here’s an overview of the top token, protocol and airdrop news of the day:

🚚 What’s happening in NFTs?

Here is the list of other notable headlines of the day in NFTs:

• NFT Leaders were largely flat over the weekend; Punks even at 29.9 ETH, Pudgy even at 5.35, BAYC even at 5.9 ETH; Hypurr’s -2% on 634 HYPE
• v1 Punks (+10%) and Quirkies (+13%) were notable movers
• Pudgy penguins announced a collaboration with Bearbrick and another toy sale sold out