- Crypto market sees minor correction after strong rally
- Traders cautious due to uncertainty around Fed rate cuts
- Small-cap coins show impressive gains despite market pullback
After a bullish few days, the crypto market is now facing a mild correction. Bitcoin dropped by 0.7%, currently trading at $92,390, while Ethereum dipped 0.4% to $3,177. This cooling-off comes as uncertainty around U.S. Federal Reserve rate cuts weighs on market sentiment.
The total market capitalization stands at $3.33 trillion, signaling overall strength, but also a pause in upward momentum. Traders are watching closely, unsure if the Fed will ease monetary policy soon, which has traditionally been a bullish trigger for crypto assets.
Altcoins Take a Hit, But Small Caps Shine
While the broader market slowed, several major altcoins faced sharper losses. Tokens like Telcoin ($TEL), Morpho ($MORPHO), and Strike ($STRK) were among the top losers, each dropping between 5% and 6%. Pump ($PUMP) and Bittensor ($TAO) also recorded a 4% dip.
Despite the red in large-cap altcoins, some small-cap tokens defied the trend. XNY led the gains with a massive 76% surge, followed by Prime ($PRIME) at 48%, Omni ($OMNI) and Umbra ($UMBRA) at 38%, and Shadow ($SHDW) climbing 33%. These coins are attracting speculative interest even in a cautious environment.
Fear Index Signals Uncertainty
The Fear & Greed Index sits at 28, firmly in the “Fear” zone, indicating market participants are hesitant. The Altcoin Index stands at a low 19/100, showing weak momentum in the broader altcoin sector.
Additionally, $262 million in liquidations across the market point to volatility catching some leveraged traders off guard. Until there’s more clarity from the Fed, the crypto market may continue to see choppy price action, with small caps offering pockets of excitement.
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