In brief
- Aster has surged by almost 10% over the past day, leading a broad altcoin recovery alongside tokens including Hyperliquid, Hedera and Zcash.
- Despite the bounce, HashKey’s Tim Sun says the market is in a “grueling bottoming-out phase,” not a reversal.
- Prediction market sentiment remains muted, with Myriad users expecting Bitcoin and Hyperliquid prices to slide.
The cryptocurrency market cap is steadily turning green, with altcoins accelerating their recovery bounce over the past day.
The native token of perps DEX Aster is up nearly 10% over the past 24 hours, making it the largest gainer in the top 50 altcoins by market capitalization. Other tokens including Hyperliquid and World Liberty Financial have followed suit, bouncing 8.9% and 7.6% respectively, according to data from price aggregator CoinGecko.
The broader altcoin sector has also seen gains, with the likes of Hedera, Zcash and Toncoin among the top 50 tokens that have posted gains of more than 5% over the past 24 hours.
The broad-based altcoin rebound undid a portion of the losses caused by a strong labor market yesterday.
The odds of a rate cut dropped after the U.S. added 130,000 jobs in January, experts told Decrypt. It signals a resilient economy, thereby reducing the overhead pressure for the U.S. Federal Reserve to cut interest rates.
All eyes are now on the inflation print scheduled for Friday, which could help strengthen the odds of a rate cut. On prediction market Myriad, owned by Decrypt’s parent company Dastan, users remain broadly pessimistic, putting the likelihood of a rate cut of 25bps or more before July at just 33%, down 7% from Tuesday.
Though the total crypto market cap bounced 1.4% over 24 hours to $2.39 trillion due to the ongoing altcoin recovery rally, experts maintained a cautiously optimistic stance.
“The market has not yet seen a structural trend reversal.” Tim Sun, senior research analyst at HashKey Group, told Decrypt. “While market sentiment remains fragile and the risk of inertia-driven downward movement cannot be ruled out in the short term, on-chain data and capital flows suggest that buying support is strengthening.”
Sun explained that even if the market faces further corrections, the intensity of the selling is likely to fade as the market enters a ‘grueling bottoming-out phase’ where downside potential and volatility begin to converge, in a previous Decrypt report.
Despite the altcoin bounce, investor sentiment remains fearful,with Myriad users assigning a 57% chance that Bitcoin’s next move could take it to $55,000 rather than $84,000.
Decentralized exchange Hyperliquid, whose token was a top gainer earlier this week, still has a weak investor outlook in terms of sentiment. Myriad users put the probability of HYPE’s next move taking it to $26 rather than $41 at over 65%, up from under 60% on Monday.
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