The crypto market slipped back to the lower end of its trading range after the Federal Reserve’s 25 bps rate cut failed to trigger strong momentum. While the move is seen as positive for long-term macro conditions, traders had already priced it in, leading to a quick unwinding of long positions.
Bitcoin Holds Key Support but Struggles to Break Resistance
Bitcoin (BTC) is trading around $90,350, staying above the crucial $88,200 support zone. However, the upside remains limited as BTC continues to face heavy resistance near $94,500, a level it has failed to break this week.
The market now waits for a fresh catalyst to push BTC out of its tight range.
Key highlights:
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BTC remains stable but capped below $94,500 resistance
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Implied volatility dropped to its lowest since November
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ETH/BTC volatility spreads widened
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Risk reversals stayed negative across all tenors
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Open interest fell sharply, especially in ADA
Derivatives Market Shows Weak Momentum
Traders are showing reduced risk appetite following the Fed announcement.
Volatility and Options Data
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The BVIV 30-day implied volatility index dipped to 46.95%, its lowest since Nov. 13, showing a cooling market.
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The ETH–BTC IV spread has increased, signaling renewed focus on Ethereum (ETH).
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Both BTC and ETH risk reversals remain negative, indicating strong demand for protective put options.
Futures and Funding Rates
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ADA open interest dropped 10% in 24 hours, leading declines across major tokens.
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Funding rates for most altcoins—excluding BTC and ETH—have turned deeply negative, showing traders are aggressively taking short positions.
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Market behavior suggests investors are reducing risk heading into year-end.
Altcoins Extend Decline Amid Low Liquidity
The altcoin market weakened further on Thursday, with several tokens facing sharp losses due to thin liquidity.
Major Losers
Tokens such as ETHFI, FET, ADA, and PUMP dropped more than 8% in the last 24 hours.
A key reason is low order-book depth—
For example:
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ETHFI’s 2% market depth sits around $500,000 on each side, making prices highly sensitive to moderate-size trades.
Bright Spot: Monero (XMR) Gains
Amid broader weakness, Monero (XMR) rose more than 2%, supported by strong demand for privacy coins.
Altcoin Season Index Slumps
CoinMarketCap’s Altcoin Season Index is now at 19/100, far below September’s peak of 77/100, showing investors prefer Bitcoin and Ethereum over speculative altcoins.
Bitcoin Firms Reduce Holdings to Raise Liquidity
In other market updates, U.K.-based Satsuma Technology sold 579 BTC from its total holdings of 1,199 BTC to secure liquidity for upcoming commitments.
Key details:
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The sale generated £40 million ($53.2 million)
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The company now holds 620 BTC and nearly £90 million in cash
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The move is part of preparations for a planned uplisting
