#CryptoMarketRebound

The current crypto market is in a “risk-off / fear mode,” with high-volume pullbacks and increasing macro uncertainty.
1. The total crypto market capitalization is approximately $2.93 trillion, down about 4.3% in the last 24 hours, with 24-hour volume increasing by around 22% to $118 billion.
2. Bitcoin (BTC) has declined approximately 4.2% in 24 hours, and Ethereum (ETH) has fallen 6.4%, with BTC dominance at a high of 58.6%, and altcoins generally weaker than BTC.
3. The main reasons for the sell-off are upcoming heavy US data releases and BoJ decisions, year-end liquidity concerns, liquidation of leveraged positions, and regulatory uncertainty.

To elaborate;
1. Market Size, Liquidity, and Sentiment
The total market cap of crypto assets is about $2.93 trillion, having pulled back roughly 4.32% in the last 24 hours. During the same period, total 24-hour volume increased from $96.7 billion to $118.1 billion, approximately +22%, indicating a “volume-driven” decline, meaning that while prices are falling, trading activity remains high.

Brief overview of market metrics:
Total market cap; $2.93 T
24h change; -%4.32

Total 24h volume; $118.11 B
24h change; +%22.20

Global leverage OI; $854.85 B
24h change; +%9.80

BTC dominance; 58.6%
24h change; ~stable

Altcoin market cap; $1.21 T
24h change; -%1.16

Fear index; 21
24h change; +24

Additionally:
1. Leverage: Open interest in derivatives is about $855 billion, having increased nearly 10% in the last 24 hours. This indicates leverage remains high, which can amplify movements.
2. Sentiment: CMC Fear & Greed index is at 21, in the “fear” zone, and social media sentiment score is 4.71 on a 0–10 scale, slightly negative. Fear is dominant but not panic level.
3. Rotation: The Altcoin Season index points toward “Bitcoin Season,” with high BTC dominance. This suggests investors are behaving more defensively, staying mostly in BTC, and not taking aggressive risks on smaller altcoins.
What it indicates: The overall picture is of a tight market, still with high leverage, where risk appetite has decreased, leading to a flight to “safer” assets like BTC, and selective behavior in altcoins.
2. Short-term Outlook for BTC and ETH
BTC and ETH are guiding the market direction, both under clear pressure recently.

1. BTC side: According to news flow, BTC has recently dipped below $90k, testing around $85k at times; this represents a decline of over 30% from the peak of $120k+. Most of the selling appears to have accelerated after support levels were broken, with leveraged longs being liquidated.
2. ETH side: ETH has performed weaker than BTC, with a 24h decline of -6.4%. This aligns with the overall risk-off mode and pressure on altcoins / L2 ecosystem.
3. Altcoins: Many major altcoins like (SOL, XRP, BNB) have experienced 3–7% drops in 24 hours, with some meme and AI coins showing more volatile swings.

What it indicates: When leaders turn downward, especially with ETH weaker than BTC and altcoins falling together, it generally signals a low risk appetite environment.
3. Macro and News-related Pressures
The current price action is driven by macro and crypto-specific factors:
1. Macro data calendar and interest rates: This week, key US data releases include employment, unemployment, inflation (CPI), PMI, and speeches by Fed officials. Additionally, decisions from BoJ, ECB, and BoE are approaching. Markets are wary of potential delays in additional rate cuts, which puts pressure on risky assets including (cryptos). A recent analysis links BTC’s dip below $90k to “decreased risk appetite ahead of upcoming data throughout the week.”
2. Fed and policy uncertainty: News reports highlight that the Trump administration claims inflation is “fully neutralized” and favors looser policies, while the Fed remains cautious. This divergence in policies and monetary stance creates uncertainty about the interest rate path, causing volatility in risky assets including crypto.
3. Leverage and technical levels: Analyses indicate that BTC falling below key technical levels has triggered waves of liquidations in leveraged longs, accelerating the decline. Rising open interest and liquidation data support this view.
4. Regulation and legal front:
1. In the US, the SEC’s easing of some lawsuits and investigations is seen as moving toward a more “pro-crypto” environment in the long term, but the delay of regulatory reforms by the US Senate until 2026 prolongs short-term uncertainty.
2. In the UK, plans to bring crypto under FCA regulation starting 2027 suggest a clearer long-term framework, but regulation remains a key topic in the short term.
What it indicates: The market is currently mainly focused on “macro and liquidity risks.” The mixed but somewhat easing regulatory outlook will influence prices more in the medium to long term than immediately.

In summary, the market currently:
1. Is experiencing a sharp but not panic-driven pullback, with a market cap decline of about -4%, high volume, and prevailing fear(.
2. Major assets like BTC and ETH are undergoing a significant correction, with altcoins often experiencing even more intense moves.
3. The short-term direction will be determined by upcoming US data, BoJ decisions, and how leveraged positions are unwound; both downward sags and “short squeeze” rapid rebounds are possible in this period.