The rebound in the crypto markets, analysts said, suggests cautious institutional re-entry, but also underlines that macroeconomic signals and ETF flows will remain pivotal
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
Despite the volatility, analysts suggest this correction is not a sign of fundamental weakness, but rather a leverage flush, a natural reset following an extended rally
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
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
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
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
Ashish Singhal, Co-founder of CoinSwitch, believes that India needs a balanced approach to the crypto markets-emphasizing smart regulation, robust security standards, and ongoing investor education
Market analysts attribute the the cautious optimism to a balance between consolidating price action and renewed corporate activity
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
Activity in the DeFi space also remained robust, with year-to-date lending volumes rising sharply, signaling deeper integration between traditional and blockchain-based finance, said analysts
Market analysts attributed the renewed bullish sentiment to significant inflows into spot Bitcoin ETFs, which registered $333 million in net investments in a single day
Ethereum, on the other hand, is lagging slightly but sits at a key breakout point, holding $4,300 support and now retesting its descending trendline