Here’s a breakdown of the crypto market from last week:
Bitcoin Responds to The Latest Rate Cut With Silence
The long-anticipated US Federal Reserve (Fed) interest rate cut announcement finally arrived with a 0.25% reduction 📉. The cut itself was never the story. Everyone paying attention knew it t was coming. What mattered was Fed Chair Jerome Powell’s tone, which was very cautious. Heavy on data, light on confidence. That was enough for traders to start cooling expectations for next year, with talk of fewer cuts and even the possibility that January turns into a tricky month. So yes, rates went down, but risk appetite didn’t come with it 🥶.
Bitcoin showed that hesitation almost immediately. After flirting with the mid-$90,000s earlier in the week, the price slipped back under $90K and has since been moving sideways. We’re stuck between the high $80Ks and low $90Ks, with holiday liquidity drying up and exchange-traded fund (ETF) flows failing to provide any real support.
Without that steady institutional bid, the market just seems like it doesn’t have the fuel to push higher, and altcoins are feeling it even more.
Altcoin Rally Odds Are Low
As Bitcoin hits resistance, the odds are swinging aggressively on small moves for altcoins, which usually means positioning is tight and conviction is fragile. Ethereum (ETH) has technically been the strongest performer of the bunch, posting the only weekly gain among major assets, yet confidence in a sustained breakout keeps fading. Ripple’s XRP and Solana (SOL) still showed slight bullish moves, but that optimism was eroded by every sideways movement before they dipped slightly.
It feels like everyone’s waiting for a year-end rally, but nobody wants to be the first to really believe in it.
Meanwhile, more meaningful shifts happened off the charts. The Commodity Futures Trading Commission (CFTC) showed signs that it may scrap outdated crypto laws, which could ease some long-standing regulatory challenges, while also rolling out a pilot program allowing BTC, ETH, and Circle’s USDC to be used as collateral in US derivatives markets. Plus, US regulators approved banks to act as intermediaries for crypto transactions.
Now, we wait for the market’s next move. Hopefully, we’re on the right side when it finally shows up 🤞.
Disclaimer: This content may cause extreme FOMO (Fear of Missing Out). Side effects of investing include sudden wealth (or, you know, the opposite 😢). Please do your own research (DYOR) or speak to your financial advisor before making any decisions.
