Market sentiment stayed bullish after the latest U.S. CPI print, with traders pricing in multiple Federal Reserve rate cuts this year. That optimism has pushed bitcoin higher and put altcoins in the spotlight — investors and analysts say XRP, SOL and other mid-cap tokens could outperform if easing expectations are realized.
Why traders are bullish
Macro signals are shifting in favor of risk assets: the U.S. 10‑year Treasury yield looks set to slip below 4%, and market pricing now anticipates several Fed cuts beginning soon. Institutional flows into spot BTC and ETH ETFs continue, and many market participants point to improved regulatory clarity and corporate treasury allocations as durable sources of demand.
Altcoins in focus
Analysts at trading firms and exchanges highlight a shortlist of tokens that may lead the next leg up. XRP and SOL are singled out for potential upside, both technically and on a fundamentals basis, while tokens such as BNB, HYPE and CRO draw attention after fresh all‑time highs. Market makers also flagged POL as projects expand institutional access to network tokens, a theme that could support broader altcoin flows.
Derivatives and on‑chain signs
Open interest in top crypto futures has risen 3–5% over 24 hours, and perpetual funding rates for major coins remain positive, signaling a net bullish bias. Yet the market is mixed: some smaller tokens show negative funding (bearish positioning), and options data still reflects demand for downside protection into December. Continued whale accumulation in select altcoins is another on‑chain indicator that traders are watching closely.
Risk and what to watch
Price forecasts are uncertain. While easing monetary policy and ETF inflows are tailwinds, risks include sticky inflation, sudden macro shocks and security incidents — recent social‑engineering hacks underline persistent operational threats. Traders should weigh position sizing and use stops; historical patterns show altcoin rallies can be volatile and short‑lived.
Bottom line
The current setup — expectations of Fed cuts, falling bond yields and steady institutional demand — could catalyze a rotation into altcoins if confidence holds. Watch XRP’s technical setup, institutional listings and token unlock calendars for early clues about momentum and where capital may flow next.
Source: CoinDesk. Read the original coverage for full details.
