Crypto Markets Edge Lower After Fed Rate Cut, Altcoins Lag
The crypto market slipped Thursday after the Federal Reserve’s 25-basis-point rate cut failed to spark new momentum. While the move supports macro assets in the long term, it was largely priced in, leading to rapid unwinding of long positions.
Bitcoin held above $88,200, trading near $90,350, as traders look for catalysts to clear this week’s resistance at $94,500. Altcoins lagged, with ETHFI, FET, ADA, and PUMP losing more than 8% in 24 hours amid thin liquidity.
Derivatives and Market Trends
- BTC’s 30-day implied volatility (BVIV) dropped to 46.95%, the lowest since Nov. 13.
- Ether’s IV has widened relative to BTC, signaling renewed market focus.
- BTC and ETH risk reversals remain negative, showing ongoing demand for protective puts.
- Futures open interest in ADA fell 10%, pointing to year-end risk reduction.
- Funding rates for most altcoins, except BTC and ETH, turned sharply negative.
Altcoin Highlights
Liquidity constraints continue to amplify price swings. ETHFI’s 2% market depth is around $500,000, making modest trades move prices significantly. Monero (XMR) bucked the trend, rising 2% to $409.85. CoinMarketCap’s “altcoin season” index remains low at 19/100, far below September’s 77/100, as investors favor BTC and ETH over speculative altcoins.
