The crypto market remained steady early Wednesday, with Bitcoin (BTC) bouncing back above $112,000, while several altcoins posted notable gains. CoinMarketCap’s altcoin season index climbed to nearly 60%, signaling that a new altcoin cycle may be underway.
Story Protocol’s IP token surged above $10 after Heritage Distillery, a corporate adopter of altcoins for treasury purposes, refined its strategy to accumulate IP. Other smaller tokens such as Mantle (MNT) and PUMP recorded double-digit gains in the past 24 hours, highlighting a rotation into more speculative assets.
Traders are closely monitoring tomorrow’s U.S. inflation data to gauge potential market direction. Bitunix analysts noted, “Short-term sentiment still favors rate-cut optimism. Moderate data could fuel rebounds in risk assets, while higher-than-expected inflation may strengthen the dollar and pressure BTC and ETH.” Key support levels: BTC $108,800, ETH $4,250.
Derivatives Snapshot
BTC futures open interest held steady ahead of the CPI release. ETH, SOL, and HYPE saw OI rise over 2%, while XRP, SUI, ADA, and ENA experienced outflows. Annualized funding rates for major coins, except TRX and XLM, hover around 10%, indicating a cautious bullish bias. CME BTC options OI hit a record $5.6 billion, while Deribit data shows BTC and ETH puts trading at a premium to calls, signaling lingering downside caution.
Altcoin Momentum
Despite cautious sentiment, altcoins continue to outperform. CoinMarketCap’s altcoin season index surpassed August’s high of 57, reaching 59/100. Santiment highlighted that sentiment is growing more negative even as altcoin prices rise, with traders anticipating BTC could dip below $100K and ETH under $3.5K. Mantle (MNT) and Pyth (PYTH) led gains, rising 15% and 10%, respectively, over 24 hours. BTC remains range-bound around $112,500, consolidating between $107,000 and $113,000 after failing to break above $124,000—a pattern that historically coincides with altcoin season rotation.
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