Key Highlights:
- Bitcoin has bounced back over $112,000, while altcoins like IP, MNT, and PUMP have experienced double-digit increases, suggesting the start of an altcoin season.
- Story Protocol’s IP token saw a surge after Heritage Distillery adopted it as a treasury asset.
- Traders are keenly awaiting the upcoming U.S. inflation data, where moderate outcomes might uplift risk assets, whereas high inflation may bolster the dollar and affect BTC and ETH negatively.
Crypto Market Trends
The sun is beginning to shine on altcoins. (Soumyadip Sarkar/Unsplash)
The cryptocurrency market remained steady earlier today with Bitcoin priced at BTC $113,608.91 recovering beyond the $112,000 mark. Smaller altcoins have witnessed significant gains in the past day, with CoinMarketCap’s altcoin season index climbing nearly to 60%, indicating that the altcoin season may well be underway.
With increasing anticipation surrounding the upcoming U.S. inflation data, which could strongly influence the direction of asset prices, many traders are adopting a cautious approach. Analysts suggest that inflation figures staying within a reasonable range could lead to a rebound in risk assets, while higher-than-expected inflation might bolster the dollar, applying pressure to BTC and ETH.
Derivatives Outlook
- Futures open interest for BTC has remained stable in anticipation of the U.S. CPI release.
- There has been a noted increase in open interest for ETH, SOL, and HYPE, while XRP, SUI, ADA, and ENA have experienced capital outflows.
For those trading on Deribit, BTC and ETH puts expiring in December continue to trade at a premium compared to their calls, signaling lingering fears about market downturns.
Token Updates
- The crypto sector seems to be entering an ‘altcoin season’ despite a somewhat bearish market sentiment.
- Capital appears to be shifting towards lesser-known tokens, which have shown considerable price increases recently.
- Notably, altcoins like MNT and PYTH have reported gains of 15% and 10%, respectively, in the past day.
Market dynamics continue to evolve, and hence traders are advised to monitor developments closely.
