Weak Signal: Why Did BTC, ETH, SOL, and ADA Drop Despite the Asia Rally

The biggest challenge in the crypto market this past week is not the level of enthusiasm but the quality of signals. Amid rising Asian equities and USD distribution, Bitcoin and major altcoins continue to show weak signals of ongoing recovery. This phenomenon reveals a deep disconnect between the traditional markets and the crypto ecosystem.

Bitcoin Holds at $88K Zone, No Certainty of Rise

Bitcoin is trading around $88,300 (from previous $88,196.51), but the elusive $90,000 target has not been reached even under positive conditions. Since the surge in forced liquidations last week, the largest cryptocurrency has not regained its previous strength. This consolidation is more than just a technical pattern—it’s a sign of deep market fear.

Over $1 billion in liquidation has drained excess leverage from the market, but instead of encouraging buying, it only leaves hesitation. Traders are pausing because there is no clear direction—they are not relying on signals from policies, fiat prices, or market capacity to support higher levels.

Asia Rises, Crypto Falls: The Doubtful Disconnect

The divergence is obvious. In Asia, the MSCI Asia Pacific Index hit new highs while emerging markets continue to grow their success. The US dollar declined, a common event that should typically boost Bitcoin and other assets measured against the dollar.

But crypto did not follow suit. While gold remains near $2,000 per ounce (from a reference of $5,000), Bitcoin and major tokens stayed lower than last week.

Market participants offer a clear explanation: crypto is acting more as a high-beta extension of global risk appetite rather than an actual defensive asset. “Crypto continues to trade as a volatility amplifier rather than a safe haven asset,” said Wenny Cai, COO of Synfutures. “The liquidation flush removed excess leverage, but policy uncertainty, funding costs, and long-term regulation keep buyers cautious.”

Major Altcoins Collapse: ETH, SOL, ADA

Ethereum dropped to $2,950, while Solana hovered at $123.51. Cardano also faced pressure, trading at $0.35. These major tokens declined by 7% to 12% over the past seven days—a demonstration of how weak the market signals are amid the best global conditions.

The decline is not due to technical failure or bad news. It’s because of weak signals flowing from macroeconomic indicators. Investors remain uncertain about the direction of the global economy, how the new administration will handle cryptocurrency regulation, and what role cryptocurrencies will play in the larger financial landscape.

The Market Waits: Who Will Change?

Currently, Bitcoin and crypto are in a “holding pattern” filled with hesitation. Traders are waiting for clearer signals from three directions:

1. Equity Markets – Will positive momentum in stocks continue, or will there be a correction?
2. Policy and Regulation – Will the crypto regulatory environment turn favorable in the coming months?
3. Funding Costs – Will interest rates and liquidity conditions change further?

As trading activity in New York increases, observers watch whether strength in equities and emerging markets can push crypto higher, or if Bitcoin remains below $90,000 until confidence is rebuilt.

Pudgy Penguins and XRP: Light in a Dark Market

Not all news is bleak. Pudgy Penguins is growing as one of the strongest NFT-native brands, transitioning from “digital luxury goods” to a multi-vertical consumer IP platform. The project has already surpassed $13 million in retail sales and sold over 1 million units, while their Pudgy Party game has exceeded 500,000 downloads in just two weeks.

Meanwhile, XRP has fallen about 4% this month but is receiving strong support from the US-listed spot XRP ETF with a net inflow of $91.72 million—an important indicator of fundamental interest in this asset despite weaker signals.

Conclusion: Waiting for Certainty

The crypto market is at a critical juncture. Weak signals do not mean no opportunity—they indicate that the market needs clearer understanding before making big moves. For investors, the message is clear: until stronger signals emerge from various directions, Bitcoin, Ethereum, Solana, and Cardano will remain confined within a tight range.