The crypto market experienced sharp declines this week as Bitcoin fell below $60 K and total capitalization lost almost a trillion.

The fear and greed index reached historic lows, while many investors realized losses to preserve remaining capital amid heightened volatility.

Market overview

Bitcoin declined by more than 26% over the past month, and altcoins suffered proportionally larger drawdowns across multiple sectors.

That pattern does not imply every token will fall, since projects with substantial products and real use cases can still appreciate.

Notable projects

• Tether announced a strategic investment in LayerZero Labs, supporting the project behind omni-chain stablecoin $USDt0 and tokenized gold $XAUt0.

  Over the past year $USDt0 processed transactions worth $70 billion, a figure cited to demonstrate LayerZero’s cross-chain utility.

  Following the investment news, the protocol token $ZRO increased by more than 30% over the past week.

• BlackRock announced plans to launch a treasury-backed token named BUIDL on Uniswap and disclosed intentions to acquire an undisclosed amount of $UNI.

  The report coincided with a near 40% intraday rally in the Uniswap ecosystem token on the day of the announcement.

• Prediction market Polymarket attracted attention as traders sought quicker returns during stress periods, illustrating faster-moving speculative capital flows.

Market dynamics

Market narratives shift rapidly, leaving projects without clear product-market fit at greater risk, while those building institutional integrations may show resilience.

Projects that deliver usable infrastructure for payments, decentralized finance, or tokenized real-world assets are more likely to demonstrate durable utility.

What to do with a portfolio

• Diversify holdings across multiple protocols and asset types to avoid concentration risk focused solely on $BTC or $ETH.

• Prioritize projects with tangible products, such as L1/L2 platforms, decentralized exchanges, or real-world asset infrastructure, when assessing long-term potential.

• Avoid single-day speculative trades and outright gambling; focus on risk-adjusted positions aligned with your time horizon and liquidity needs.

• Establish a holding strategy combined with dollar-cost averaging and define a comfortable recurring purchase schedule to reduce emotional decision-making.

Maintaining discipline and focusing on projects with demonstrable utility can improve outcomes as market cycles continue to evolve unpredictably.