Crypto Pullback Marks Temporary Pause, Bull Cycle Remains Intact, Says Analyst

Despite a recent 1.4% dip in the total crypto market cap following a 'Crypto Black Friday' crash, analyst Crypto Dan believes the bull run is far from over. Dan compared current capital inflows to previous market cycles, noting that the current market is far less overheated than in Q1 2021 or March/December 2024, suggesting the current correction will be shorter and less severe. Historically, altcoins stage powerful rallies as the market enters its most overheated phase, which Dan expects to happen again, keeping the bullish cycle intact.

Bullish catalysts are also emerging from macroeconomic factors. The market anticipates a 99.9% chance of the Federal Reserve cutting interest rates by 25 basis points today. While the rate cut itself might be priced in, analyst Ash Crypto noted that weak job data, a cooler CPI report, and slow economic activity are pressuring the Fed toward a more dovish stance. Furthermore, bank reserves falling below $3 trillion might prompt the Fed to end its Quantitative Tightening (QT) program soon, which Ash Crypto views as a major risk-on signal.

Adding to the bullish outlook, Crypto Rover pointed to the US Treasury recently buying back $2 billion of its own debt, describing it as "stealth quantitative easing." Analysts conclude that if the Fed ends QT and adopts easing measures, combined with less market overheating, the crypto market is poised for a continued rally rather than a downturn.

(Source：BeInCrypto)