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Crypto Market in Bitcoin Season as Altcoin Season Index Falls to 38 The Altcoin Season Index , tracked by CoinMarketCap (CMC) , fell to 38 at 00:30 UTC on February 5 , down one point from the previous day . This confirms that the market remains in Bitcoin Season , as altcoins continue to underperform BTC over the last 90 days. Altcoin Season Index Breakdown: Altcoin Season (Above 75): 75% or more of the top 100 altcoins must outperform Bitcoin . Bitcoin Season (Below 25): 25% or fewer of altcoins outperform BTC, strengthening Bitcoin’s dominance. Current Index at 38: The market is Bitcoin-dominated , but not at extreme levels. With altcoins struggling to gain traction , Bitcoin continues to dictate market trends . Why Is Bitcoin Season Continuing? 1. Bitcoin ETFs Attract Institutional Investors Spot Bitcoin ETFs are absorbing most institutional capital , reducing demand for altcoins. Bitcoin dominance remains strong , preventing an altcoin breakout. 2. Macroeconomic Uncertainty Keeping Investors Cautious U.S.-China trade tensions and global economic concerns are making investors risk-averse. Traders are sticking to BTC as a safe-haven asset , avoiding riskier altcoins. 3. Market Cycles Favor Bitcoin Before Altcoin Rallies Historically, altcoin seasons follow Bitcoin’s major price moves . If BTC stabilizes or retraces, capital may rotate into altcoins . Will Altcoin Season Return Soon? Bullish Case: If Bitcoin price consolidates , capital could flow into altcoins . Upcoming Ethereum upgrades (like Dencun ) may boost ETH and DeFi projects . Layer 1 and AI tokens could drive new altcoin narratives . Bearish Case: Continued Bitcoin dominance may delay altcoin breakouts . Macroeconomic instability could keep investors risk-averse. If altcoins fail to show strong performance , Bitcoin Season may extend further . Conclusion The Altcoin Season Index dropping to 38 confirms that Bitcoin Season is still in play , with BTC continuing to dominate the market. Altcoins remain under pressure , but a shift could occur if Bitcoin stabilizes and investors rotate capital into altcoin projects . Until then, altcoin traders should remain cautious and watch Bitcoin’s price action closely . Stay updated on crypto market trends and altcoin performance with our latest insights .
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XRP Price Prediction for February 5
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Morgan Stanley Delays Fed Rate Cut Forecast to June Amid Inflation Concerns
Morgan Stanley Pushes Fed Rate Cut Expectations to June Morgan Stanley economists have revised their Federal Reserve interest rate cut forecast , pushing it back from March to June 2025 , according to Odaily Planet Daily News . Key Takeaways: No Fed rate cut expected in March as inflation risks remain. First rate cut now projected for June 2025 . Trump’s accelerated tariff policies may keep inflation higher for longer . This shift in expectations suggests that the Federal Reserve may adopt a more cautious approach before easing monetary policy. Why Is the Fed Rate Cut Being Delayed? 1. Trump’s Tariffs May Keep Inflation Elevated The faster-than-expected implementation of tariffs on Chinese imports may increase consumer prices . Higher tariffs could slow inflation’s decline , forcing the Fed to hold rates steady longer . 2. Fed Waiting for Clearer Economic Signals The labor market remains strong , reducing pressure for immediate rate cuts. The Fed wants to see sustained progress in lowering inflation before easing policy. 3. Financial Markets Adjusting to New Rate Expectations Equities and bond markets had priced in a March rate cut , but forecasts are now shifting. Delaying cuts could impact stock market performance and corporate borrowing costs . What Does This Mean for Investors & Markets? Bullish Case: Delayed rate cuts suggest the economy remains strong , reducing recession fears. A slower rate-cut cycle could stabilize the U.S. dollar and fixed-income markets . Markets may adjust gradually to a more cautious Fed policy. Bearish Case: No March rate cut could disrupt market expectations and increase volatility . Higher interest rates for longer may weigh on stocks, crypto, and real estate . Inflation risks from Trump’s tariffs could lead to prolonged Fed hawkishness . Conclusion Morgan Stanley’s revised Fed rate cut forecast highlights growing concerns over inflation pressures from U.S. trade policies . While a June rate cut remains likely , the Federal Reserve appears in no rush to ease monetary policy , signaling potential market adjustments ahead . Stay updated on Fed policy changes and market reactions with our latest insights. Bitcoin World
