The crypto market slipped to the lower end of its trading range after the Federal Reserve’s 25 bps rate cut failed to generate new bullish momentum. Both Bitcoin (BTC) and major altcoins are now searching for strong triggers to break out of their current levels.
Bitcoin Holds Key Support But Faces Heavy Resistance
Bitcoin is trading near $90,350, holding above the crucial $88,200 support zone. However, upside movement remains limited as BTC struggles to break the $94,500 resistance level, which has capped momentum throughout the week.
Market analysts say traders had already priced in the Fed rate cut, leading to an unwinding of long positions shortly after the announcement.
Volatility Drops to Monthly Lows
The broader crypto market remains subdued, with several indicators showing reduced volatility and weaker trader activity:
- 30-day implied volatility (BVIV index) has fallen to 46.95%, the lowest level since mid-November.
- ETH/BTC volatility spreads widened, indicating growing focus on Ethereum.
- Risk reversals for both BTC and ETH remain negative across time frames, signaling demand for put options.
- Open interest dropped sharply across major assets, with ADA seeing the biggest 24-hour decline at 10%.
Funding rates for many top altcoins—except BTC and ETH—have turned deeply negative, reflecting increased bearish short positions.
Altcoins Slump as Liquidity Thins Out
The altcoin market continued its slide, with several tokens suffering deeper losses due to low liquidity:
- ETHFI, FET, ADA, PUMP all dropped over 8% in the past 24 hours.
- Market liquidity remains thin after October’s heavy liquidation wave.
For example, ETHFI’s 2% depth sits at just $500,000 on each side of the order book—meaning a relatively small market order can move the price significantly.
XMR Stands Out With Gains
While most altcoins struggled, Monero (XMR) rose over 2%, supported by renewed interest in privacy coins. Its strong performance contrasts sharply with broader market weakness.
Meanwhile, the Altcoin Season Index has fallen to 19/100, far below September’s 77/100, showing that investors now favor Bitcoin and Ethereum over high-risk altcoins.
Market Overview: What Traders Should Watch Next
Bitcoin is still searching for a strong catalyst to lift it above the $94,500 resistance level, while altcoins remain under pressure due to:
- weak liquidity,
- declining open interest,
- bearish sentiment across derivatives markets.
If macro conditions stabilize and volatility returns, the market may finally regain momentum.
Industry Update: UK Firm Satsuma Cashes Out Bitcoin Holdings
Satsuma Technology, a U.K.-based Bitcoin-focused company, sold 579 BTC from its total 1,199 BTC holdings.
Key Highlights
- The sale generated £40 million ($53.2 million) in net proceeds.
- The company made the liquidation to meet upcoming loan note obligations ahead of its planned uplisting.
- After the sale, Satsuma still holds 620 BTC and approximately £90 million in cash.
