Crypto Markets Today: Crypto Lags Behind Stocks and Gold as Traders Turn Defensive

Market Overview - Cryptocurrencies are struggling to replicate the bullish trends seen in equities and precious metals, with Bitcoin (BTC) trading at $112,000, reflecting a modest gain but remaining on the lower side of its range [1] - Altcoins are underperforming, with FET dropping by 6.2% after Ocean Protocol's exit from the ASI Alliance, leading to a significant sell-off [2] Altcoin Performance - The "altcoin season" index on CoinMarketCap has declined to 38/100 from 67/100 earlier this month, indicating a bearish sentiment in the altcoin market [2] - Specific altcoins like MYX and CAKE have seen declines of 10% and 4% respectively, highlighting the overall weakness in the altcoin sector [2] Derivatives Positioning - Futures open interest for tokens like XPL, ASTER, SUI, and LINK has increased, while BTC futures open interest on Binance surged by $510 million, suggesting increased trading activity [4] - A whale address opened a 5x short position in BTC worth $140 million, indicating a cautious sentiment among traders [4] - Perpetual funding rates for major cryptocurrencies, including Bitcoin and Ether, remain flat-to-negative, reflecting a lack of bullish momentum [4] FET and Ocean Protocol - FET has experienced a significant decline of 43% due to Ocean Protocol's decision to leave the ASI Alliance, resulting in persistent selling pressure [4] - FET is currently trading at $0.31, its lowest point in two years, having lost all bullish gains from the recent market uptrend [4] - The token had previously peaked at $3.11 in 2024 amid AI-related optimism but has since struggled to regain momentum [4] Market Sentiment - The International Monetary Fund (IMF) has issued a warning regarding the potential risks of an AI bubble, suggesting that its burst could have consequences similar to the dotcom crash [4]