KEYTAKEAWAYS
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Broad weakness is spreading across crypto markets, with most major tokens trading below key technical averages and downside risk still present.
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Circle’s Axelar related acquisition highlights a growing disconnect between protocol development and token value accrual in crypto M&A.
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Institutional investors like ARK Invest continue to add exposure to crypto equities during selloffs, signaling long term conviction despite short term volatility.
CONTENT
Crypto Market Bearishness Deepens as 75 of Top 100 Tokens Fall Below Key Averages
The cryptocurrency market is showing broad weakness as year end approaches. According to TradingView data, 75 of the top 100 tokens by market capitalization are trading below both their 50 day and 200 day simple moving averages, signaling widespread bearish momentum across the sector.
Major assets including bitcoin, ether, solana, BNB and XRP are all trading below these key technical levels. Together, these assets account for roughly 78% of the total crypto market capitalization, amplifying downside pressure and weighing on overall risk sentiment.
Only eight tokens are currently considered oversold based on the relative strength index, suggesting that most assets may still have room to decline before reaching exhaustion levels.
Axelar’s AXL Token Slides After Circle Acquires Core Developer Team Without Token Inclusion
Axelar’s AXL token declined sharply after Circle announced an agreement to acquire the team and proprietary intellectual property of Interop Labs, the original core developer behind the Axelar Network.
The deal explicitly excludes the Axelar Network and the AXL token, with Interop Labs’ engineers set to join Circle while another contributor, Common Prefix, takes on a larger role in maintaining the ecosystem. Following the announcement, AXL fell by approximately 13% as markets reacted to the lack of direct value accrual for token holders.
The move highlights a growing trend in crypto mergers and acquisitions, where buyers prioritize teams and enterprise focused infrastructure rather than publicly traded tokens tied to open networks.
ARK Invest Buys Crypto Stocks During Continued Sector Selloff
Cathie Wood’s ARK Invest added to several crypto related equities amid a multi day selloff across the sector, according to disclosures released on Monday.
ARK purchased nearly 60 million dollars worth of crypto stocks, including shares of Coinbase, Bullish and Circle Internet Group, alongside additional investments in Bitmine Immersion Technologies and CoreWeave. The purchases came as many crypto linked equities extended losses, with several names falling between six and eleven percent on the day.
ARK has a long history of buying into market drawdowns, and the latest additions further increase its already significant exposure to the crypto sector despite ongoing volatility.
