The cryptocurrency sector has experienced a technical breather with Aster rising nearly 10% in the last 24 hours, leading an altcoin market recovery that includes assets such as Hedera and Zcash. Despite this bullish move, analysts from HashKey Group suggest that the market is going through a “grueling bottoming-out phase” rather than a definitive trend reversal.
The total crypto market capitalization increased by 1.4%, reaching $2.39 trillion following losses caused by a stronger-than-expected U.S. labor report. However, uncertainty regarding interest rates remains high, ensuring that investor sentiment stays largely cautious in the absence of clear macroeconomic confirmation during the current trading session for all global participants.
Analysis of the main gainers and current investor sentiment
Aster, the native token of a perps DEX, positioned itself as the biggest gainer in the top 50, followed closely by Hyperliquid and World Liberty Financial. However, prediction market data shows a pessimistic outlook, as many users are betting on further price drops in key assets before a real structural reversal occurs in the Blockchain ecosystem.
On the other hand, Tim Sun, senior analyst at HashKey, explained that although buying support is strengthening on-chain, the risk of downward moves driven by inertia has not entirely disappeared. Therefore, the intensity of selling could fade, allowing volatility to begin to converge at technical support levels that are fundamental for the stability of the digital financial ecosystem.
Likewise, traders’ attention has shifted toward the next inflation report to be released this Friday, which will be determining for monetary policy. Since the economy shows resilience, the odds of a rate cut have decreased, representing a significant obstacle to sustained growth for risk assets in the short term within the current financial landscape.
Is this altcoin bounce a sign of a lasting bull market?
Therefore, fear sentiment continues to predominate, with a 57% probability that Bitcoin will retreat toward $55,000 instead of seeking new all-time highs. Currently, cautious optimism defines daily operations, as the lack of massive institutional liquidity prevents the current rally from transforming into a long-term trend for investors in the cryptocurrency market.
Regarding Hyperliquid, despite its recent gains, the forecast from Myriad users suggests that the price could slide toward $26 before attempting to recover $41. In this way, market fragility is quite evident, ensuring that any negative economic data impacts severely on the valuation of assets that lead the momentary rally witnessed today in the sector.
Furthermore, the importance of this fact lies in the divergence between on-chain data and the public perception of financial risk. While capital flow suggests a silent accumulation, the distrust of retail traders acts as a drag, allowing price consolidation to be a slow and tedious process prone to unexpected corrections in the coming days for all participants.
Looking toward the future, the publication of the consumer price index will be the catalyst that defines the industry’s direction for the rest of the quarter. Meanwhile, the altcoin market recovery serves as a stress test for current supports, ensuring that only projects with solid fundamentals manage to maintain their gains against a macroeconomic environment that remains restrictive and challenging.
