The broader altcoin market mirrored the weak sentiment, with Story (IP) continuing its sell-off to emerge as the day's biggest laggard, plunging 28 per cent
The market's flagship assets - Bitcoin (BTC) and Ethereum (ETH) - remain largely range-bound, which in turn has capped momentum across other altcoins
On the macro front, comments from the US Federal Reserve Chair have shifted the narrative, signaling a greater emphasis on labor market stability over aggressive inflation control
The bulls failed to intensify volatility over the past weekend, and as a result, Bitcoin's price dropped below $112,00
After weeks of strong gains, the crypto market, analysts said, is experiencing a natural pause, driven by profit-taking and a cooling of derivatives positions
The rate cut also triggered over $105 million in market liquidations, reflecting a spike in trading activity and market volatility
While the rate cut itself is largely expected, analysts believe that Powell's forward guidance will play a crucial role in determining whether these levels push higher or lead to a corrective pullback
Crypto platforms will need to hire a security auditor registered with the Indian Computer Emergency Response Team (Cert-In), a nodal agency that deals with cybersecurity incidents
While short-term positioning remains cautious, analysts believe institutional demand through spot ETFs is lending support to the upside
Despite the modest gains, sentiment around the short-term outlook, analysts said, remains cautious
The Altcoin Season Index rose to 67 from 29 last month, signaling stronger altcoin momentum that could potentially trigger an altseason soon.
The rally was supported by strong institutional and stablecoin inflows, helping Bitcoin maintain its gains, though altcoins showed mixed performance, according to analysts
According to a document reviewed by Reuters, the RBI reportedly believes that managing risks linked to cryptocurrencies through regulation would be difficult in India
BTC dominance has slipped to 57.3 per cent, while the CMC Altcoin Season Index has climbed to 62/100, which analysts suggest are early signs of capital rotation into altcoins
Nearly 90 per cent of investors said they would increase their investments if government policies became clearer
Analysts suggest the muted price action reflects investor caution ahead of the upcoming US CPI release, which could influence the Fed's next policy decision
Market analysts attribute the the cautious optimism to a balance between consolidating price action and renewed corporate activity
With the, apparently coincidental, four-year anniversary of the last big tightening coming up this month, expect the next move by authorities to be a change of heart, a relaxation
Meanwhile, roughly $300 million in crypto positions were liquidated over the past 24 hours, led by Ethereum at $97 million and Bitcoin at $54 million
The token, promoted by Donald Trump's family and listed this week on leading exchanges Binance and Coinbase, is still changing hands about 25% below its launch price