The overall market sentiment remains dominated by fear, with the CoinMarketCap Crypto Fear and Greed Index registering at 27, firmly in the "fear" zone
Despite the intense volatility, market participants remained resilient, with total crypto market capitalisation rebounding above $4 trillion
The surge comes amid sustained institutional inflows, as investors grow increasingly optimistic about potentially supportive signals from the US Federal Reserve
The crypto market rally aligns with historical trends. October, often called 'Uptober' in the crypto space, has traditionally been bullish, with Q4 typically delivering strong gains
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
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
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
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
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
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
Analysts suggest the market may be gradually moving past recent sell-side pressure
The market analysts, however, remain optimistic, suggesting that ongoing macroeconomic factors point toward a potential trend reversal