"Some memecoins rally amid Bitcoin stagnation…selling pressure persists in derivatives markets"

As Bitcoin (BTC) struggles to reclaim the $70,000 level, reports say some altcoins—led by memecoins—are showing relatively strong performance.

According to crypto media outlet CoinDesk on the 10th, Bitcoin traded around the $68,000 range over the past day with little volatility. By contrast, the CoinDesk 20 index, which tracks major altcoins, edged higher. Ethereum (ETH) fell, but the memecoin sector showed relative strength. The CoinDesk Memecoin Index rose more than 1%, and some tokens, including PIPPIN, posted double-digit gains.

Artificial intelligence (AI)-related tokens also held up well. While some names such as Worldcoin (WLD) and Virtuals (VIRTUALS) advanced, overall market sentiment remains subdued. The Crypto Fear & Greed Index has stayed in the “Extreme Fear” zone since last week’s sharp drop.

Bearish conditions continue in derivatives markets. Bitcoin futures open interest has kept declining, pointing to a phase of large-scale deleveraging. Funding rates at major exchanges remain deeply negative, underscoring an increasing dominance of short positions. In options markets, there are signs that near-term defensive positioning is easing somewhat, but indications of a broad-based return to risk-on behavior among institutional investors are seen as limited.

Market participants say that as Bitcoin and other large-cap assets struggle to find direction, a defensive rotation is persisting, with short-term capital moving into memecoins and certain thematic altcoins.