After Fed Moves, Crypto Traders Look for Catalysts Amid Bitcoin Pullback

Crypto Markets Slip After Fed Rate Cut, Altcoins Struggle

The crypto market drifted to the lower end of its trading range Thursday after the Federal Reserve’s 25-basis-point rate cut failed to ignite new momentum. Though the move is positive for macro assets over the long term, it had largely been priced in, prompting rapid unwinding of long positions.

Bitcoin remains above key support at $88,200, trading near $90,350, as traders search for catalysts to break this week’s resistance at $94,500. Meanwhile, altcoins continued to underperform, with tokens like ETHFI, FET, ADA, and PUMP losing more than 8% in 24 hours.

Derivatives and Market Positioning

• BTC’s 30-day implied volatility (BVIV) fell to 46.95%, the lowest since Nov. 13.
• The spread between ether and bitcoin IVs has widened, highlighting renewed focus on Ethereum.
• BTC and ETH risk reversals remain negative, signaling sustained demand for protective puts.
• Futures open interest in ADA dropped 10%, reflecting broad year-end risk offloading.
• Funding rates for most altcoins, excluding BTC and ETH, have turned sharply negative.

Altcoin Market Highlights
Liquidity remains thin, amplifying price moves. ETHFI, for instance, has a 2% market depth of roughly $500,000. A few tokens bucked the trend, with Monero (XMR) up 2% at $409.85. CoinMarketCap’s “altcoin season” index remains low at 19/100, far below September’s high of 77/100, as traders continue favoring bitcoin and ether over speculative altcoins.

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