Why DeFi majors Yearn.finance, Aave, SNX plunged amid overnight BTC rally

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The trend spotted in DeFi in the last 24 hours, where it corrects while Bitcoin surges, was reminiscent of October.

Throughout the month of October, top DeFi cryptocurrencies struggled against Bitcoin.

When BTC rallied, DeFi tokens actually declined in price against both BTC and the U.S. dollar.

The timing of the abrupt DeFi market correction is noteworthy because it comes after a strong short-term resurgence.

YFI and AAVE, in particular, rallied strongly following the overall recovery of the DeFi market.

The total value locked in DeFi has also surged past an all-time high above $13.5 billion.

The bear scenario for the DeFi market in the near term.

The bearish outlook on DeFi in the near term comes from two main factors.

Given that DeFi tokens tend to trail along the uptrend of Ethereum, a potential ETH underperformance could cause a further DeFi slump.

If ETH struggles to outperform Bitcoin in the short term, it could lead to a slower momentum in the DeFi space.

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