Altcoin volatility increases after news about strategic crypto reserve

A summary weekly review of the events on the crypto markets with a focus on trend sectors, liquidity, volatility, spreads and more in cooperation with market data providers Kaiko.

After one of the most volatile weeks in the crypto economy, Bitcoin has stabilized over 90,000, which was due to the announcement by US President Donald Trump Strategic cryptocurrency reserve to create, was favored. In the meantime, the OKX operator guilty of violating the US money laundering regulations and agreed to a punishment of USD 505 million, and the SEC concluded its investigation against Uniswap Labs. This week we explore:

• What Trump's strategic reserve means for cryptocurrency.
• Bybit hackers move funds.
• Trump content on the meme market drops

Altcoin volatility increases after news of a strategic reserve

The strategic oil reserve of the United States was the focus during the last term. This time a strategic crypto reserve seems to steal attention. On Sunday, President Trump announced her foundation and first called XRP, SOL and ADA, before adding BTC and ETH.

After the inauguration of President Trump in January, Kaiko Indices launched Kaiko Eagle Index in order to benefit from such announcements. The EGLX index has increased by almost 30% since Sunday and has thus reached a cumulative return of over 226% since 2023-more than 50 percentage points more than BTC.

XRP and Sol drive market movements. They are included in the regional index and have strongly influenced the returns in the last 24 hours, as have smaller tokens as AVAX.

While BTC's reaction was relatively subdued, market volatility in old coins has risen massively. The hourly intraday volatility, which has been less than 200% since the sales pressure in February, shot up after the announcement-ADA rose to over 600%, the strongest increase in the big altcoins.

Capital rotation within the Altcoin market is likely to accelerate the inclusion of certain old coins in a US strategy reserve. Since November, trading in large-capital assets has increasingly dominated the US exchanges.

A year ago, the top 10 old coins after market capitalization made 58% of the old coin volume on US platforms and 50% on offshore exchanges. Last week, these shares were already 77% and 66%.

The increasing volatility and concentration on certain exchanges are strongly related to market liquidity. Since old coins are less liquid than Bitcoin, you can experience stronger price fluctuations. BTC remains the dominant trading volume with the largest market depth, while Sol remains the liquidest old coin.

Ada lags behind – as the weakest value in the strategic reserve, Ada could experience the strongest price effect.

The number of open futures contracts on BYBIT, OKX and Binance shows that Ada has recorded the strongest capital inflows since the announcement. This indicates that Ada's admission to the reserve is not yet fully priced. Ada's open interest has increased by 10% since the beginning of the year and is now $ 554 million.

The market extinguishing in February led to several liquidations and reduced the lever for the top 10 old coins. This repositioning could now prepare the market for a healthier and more sustainable rally in the coming weeks.

Bybit-hack: stolen funds in motion

About a week after the 1.5 billion USD Hack The Ethereum Wallet by Bybit Most stolen means are still in circulation. Studies show that the hacker, identified as a Lazarus group, uses Thorchain for money laundering.

At least 25 million USD were transferred from Level 3 wallets to Thorchain wallets and, according to Kaiko data, are connected to the Bybit hack. Additional transactions indicate that some of the $ 548 million of level 4 wallets could also be linked to the stolen funds.

Level-3 walls are in direct connection with identified hacker wallets, which is very likely to transfer transfers from these wallets to the Bybit-exploiting can be returned.

When does Michael Saylor's strategy lose drive?

Michael Saylor's strategy took a break when buying BTC this week. The company has bought over 220k BTC since the US election and has almost doubled its stocks-with a total investment of USD 33 billion.

However, the hype around Saylor's strategy could slowly let go. While BTC has hardly shown any changes since the beginning of the year, MSTR has fallen by almost 15%-however, this could change with the news about the strategic crypto reserve.

However, even briefly dressing the market could now cover the decreasing appetite for the volatile BTC proxy. A sign of the dwindling attractiveness of MSTR is the daily trading volume of its shares.

The activity reached its peak in November after the US elections when BTC increase to USD $ 100,000. At that time, the company benefited from the market tax authority by issuing convertible bonds to further finance its BTC purchases. Saylor's determined support for BTC and his willingness to emit endless quantities of guilt titles to finance his passion has so far been encountered on the bond market, whereby every emission was sold out. However, lower trade volumes and increased volatility on the cryptoma markets could dampen this demand.

Even the dealers on the forecast markets have adapted their forecasts for MSTR. This sub -group of the market is usually more risky, but in mid -February they seemed to lose the belief in Saylor's purchasing power. The market for the question of whether MSTR would reach 500,000 BTC before the end of March tended to “no” almost all the month, although the company got an incredible close to 500,000 BTC one week before the end of the month.

Trump's market share drops

When it comes to the market share of Memecoins, which are traded on central stock exchanges, Doge is rarely in second place. If so, then usually not long. Therefore, it shouldn't be too surprising that Trump, the newly shaped one Memecoin of the US Presidentput him in the shadow at the beginning of the year.

Trump was introduced a few days before the inauguration of the 45th and 47th president and caused a massive increase in activity. It is still one of the largest memoins when it comes to trading volume, but its share of 60% fell to 18% in January. However, it is unlikely that this will mean the end of Trump token mania.

During the house in 2021, Doge's supremacy was put to the test by Shib for several months. While Doge finally won the upper hand again, Shib temporarily questioned its share. Similarly, Pepe gained famousness in mid -2023 and briefly put Doge in the shade before he stayed at the top even longer in the summer of 2024 – in the middle of a flood of activities and new notations on centralized platforms.

Although the volume of Trump has dropped, it is very likely that an upswing in the general market activity will lead to a new increase in volume. The current market environment seems to burden the smaller memoins because dealers prefer Doge.