Crypto Market Bounces Back on Rate-Cut Hopes
The cryptocurrency market showed early signs of stabilizing after last week’s major sell-off, with Bitcoin moving within a narrow range of $85,000–$89,000 throughout the week. Large-cap assets are leading a slight recovery, while mid-cap and smaller alternatives linger in the background, finding it difficult to regain momentum after a prolonged phase of deleveraging. The overall market capitalisation has recovered to around $3.07 trillion, indicating a cautious increase in risk sentiment. The broader environment, as stated by Edul Patel. “As consumer confidence in the US wanes and the private-sector labour market shows signs of weakness, a risk-averse sentiment has emerged, increasing the chances of the Fed taking a more accommodative approach to monetary policy. Currently, attention is directed towards metrics like jobless claims, PCE, and GDP figures,” he remarked.
In the midst of this, the flagship token remains over 30 percent beneath its all-time high, which was achieved on October 7 this year. As of the latest update, Bitcoin was priced at 87,549.95, reflecting a decline of 0.58 percent in the last 24 hours, accompanied by a trading volume of 70.7 billion, as per reports. The cryptocurrency underwent various changes, trading within a range of $86,131 to $88,162 during the session. Following the recent sell-off, Bitcoin’s market capitalisation has dropped below the $2 trillion mark, currently at $1.74 trillion, but it remains the largest digital asset. Excitement about a possible rate reduction has fueled Bitcoin’s rise from $81,000 to $88,000. “There is now an 82 per cent probability of a 25-basis-point cut being factored into market expectations,” stated Piyush Walke.
From a technical standpoint, Walke stated, “The cryptocurrency remains below key moving averages—the 50-day and 200-day SMAs—and resistance at $93,000 is still firmly in place.” Patel observed that any positive macroeconomic change could allow Bitcoin to surpass the resistance level at $91,400, while $85,800 would act as immediate support. Ethereum was last trading at 2,948.72, reflecting a rise of 0.87 percent over the past 24 hours, buoyed by a trading volume of 23.16 billion and a market capitalization of 355.82 billion. The token is currently valued at over 40 percent less than its peak of $4,953, reached on August 25 this year. “The asset is trading near a critical long-term support but remains firmly within a multi-month descending structure.” Bulls need to regain $3,150 to change the momentum; otherwise, the current rebound may diminish. “A loss of $2,600 may prolong the downward trend towards the $2,300 area,” remarked Harish Vatnani. Walke noted that Ethereum has recently rebounded from a long-term ascending trendline, which has acted as crucial support for several months.
“A convincing daily close above the specified range could open a path toward the higher levels,” he stated. Altcoins show diverse fluctuations. Several altcoins experienced notable intraday gains, with Monad, Story, DoubleZero, SPX6900, Ethena, Quant, Hyperliquid, Dash, Bittensor, World Liberty Financial, Pi, Shiba Inu, Internet Computer, Toncoin, Injective, Starknet, Pump.fun, and PancakeSwap surging by as much as 29 per cent, as per reports. In a notable downturn, several cryptocurrencies experienced declines of up to 4 percent.
