Crypto Markets Slip as NIGHT Sinks, Privacy Coins Follow:

The crypto markets started the day in a risk-off mode as the governance token for the Cardano-based project "Midnight Network" hit a decrease of 22% over a day, which was the strongest decline seen in the top 100 tokens. The NIGHT token was followed by other tokens such as PUMP, which dropped as much as 13%, and other privacy coins such as ZEC, XMR, and MNT, which dropped as much as 8%.

Bitcoin dipped below $88,000 after its failure to sustain beyond the resistance level of $90,000. There is expectation of some level of market volatility due to the release of U.S. GDP figures.

Derivatives data showed little activity in leveraged markets, with Bitcoin futures open interest remaining flat and CME positioning further relaxing, driven by reduced demand for spot ETFs. However, Solana futures activity saw an increase, while options data highlighted rising hedge protection for the potential downside following BTC's rejection at key resistance.

A wider review of the end-of-year performance tells a more challenging story for new cryptos. Just 15% of new cryptos in 2025 are now trading above their launch value, and the median coin is down significantly on both full value and market cap. High-value launches have performed worst, and infrastructure, DeFi, and AI-related cryptos have all fallen short, excepting the relatively bright spot of perpetual DEXs.

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