Crypto Markets Retreat After Fed Rate Cut, Altcoins Under Pressure
The crypto market fell Thursday as the Federal Reserve’s 25-basis-point rate cut failed to generate fresh momentum. Though the move supports macro assets over the long term, it was largely priced in, triggering rapid unwinding of long positions.
Bitcoin remains above key support at $88,200, trading near $90,350, while traders look for catalysts to break this week’s resistance at $94,500. Altcoins underperformed, with ETHFI, FET, ADA, and PUMP dropping more than 8% in 24 hours amid thin liquidity.
Market Positioning and Derivatives
- BTC 30-day implied volatility (BVIV) fell to 46.95%, the lowest since Nov. 13.
- Ether’s IV has widened relative to BTC, reflecting renewed market focus.
- BTC and ETH risk reversals remain negative, indicating demand for protective puts.
- Futures open interest in ADA fell 10%, signaling year-end risk reduction.
- Funding rates for most altcoins, excluding BTC and ETH, turned sharply negative.
Altcoin Insights
Liquidity constraints continue to amplify price swings; ETHFI’s 2% market depth is around $500,000. Monero (XMR) rose 2% to $409.85, bucking the broader trend. CoinMarketCap’s “altcoin season” index remains low at 19/100, far below September’s 77/100, as investors favor BTC and ETH over speculative tokens.
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