Bitcoin Holds $90K Amid Fed Rate Cut, Altcoins Sluggish

Bitcoin’s price action last week was defined by repeated tests of the $94,000 resistance level. The primary cryptocurrency made two significant attempts to break through, one occurring just before and another immediately after the U.S. Federal Reserve announced a 25 basis point interest rate cut. Despite the typically market-positive news of looser monetary policy, BTC was rejected on both occasions, unable to sustain momentum above this critical threshold. The asset subsequently dipped below $90,000, only to mount another rally that was halted at $93,600.

The volatility continued into Friday, with BTC experiencing an instant drop from over $92,000 to under $90,000 in a matter of minutes. It found temporary support at $90,000, trading above it for much of the weekend. However, that floor gave way on Sunday evening, with bears pushing the price down to $87,600. As of the latest data, Bitcoin has once again rebounded to trade close to $90,000, a level that has proven to be a significant psychological and technical pivot point in recent sessions. Bitcoin’s market capitalization remains just below $1.8 trillion, with its dominance over alternative cryptocurrencies (altcoins) holding under 57% on CoinGecko.

While the broader cryptocurrency market has been sluggish, Ethereum has emerged as a notable performer. ETH has added over 2% in the past 24 hours, trading above $3,150. This gain is particularly significant given circulating analyst warnings about a potential corrective move toward the $2,500 level. Among other large-cap altcoins, Tron (TRX) is also a notable gainer. In contrast, Binance Coin (BNB), XRP, and Bitcoin Cash (BCH) are all trading slightly in the red on a daily scale.

The performance among smaller-cap assets is more mixed. Zcash (ZEC) has seen a 4% daily decline. Conversely, RAIN has gained 6%, with its price sitting at $0.008. More pronounced losses are evident in assets like NIGHT and M, with the former down 9% daily and the latter shedding 7% of its value. This patchy performance across the altcoin spectrum underscores the current market indecision, with capital flows appearing selective rather than broadly bullish or bearish.

The total cryptocurrency market capitalization has remained largely sideways, hovering around $3.16 trillion. This consolidation follows the Federal Reserve’s policy move and precedes a week packed with key U.S. economic data releases. The market’s failure to rally decisively on the rate cut suggests that the move was largely anticipated and priced in, leaving traders searching for the next fundamental catalyst.

The current stability around the $90,000 mark for Bitcoin and the $3.16 trillion level for the total market cap may indeed be a period of equilibrium before heightened volatility. Historical patterns often show periods of tight consolidation preceding major price movements. With Bitcoin’s dominance still below 57%, the market is not exhibiting signs of a classic ‘risk-off’ flight to safety into BTC, but rather a collective pause. All eyes are now on the upcoming economic developments from the United States, which have the potential to inject fresh directional momentum into both traditional and digital asset markets.