Key market signals that may confirm the start of a sizable recovery.
You are probably wondering why is crypto up today, especially if you expected the bearish trend to spillover into the weekend.
Especially after the bearish trend that occupied the second week of October. Let’s take a look at some of the key factors behind the recovering crypto prices today.
The total crypto market cap dipped as low as $3.45 trillion after 4 days of consecutive bearish daily candles.
The first reason was trend exhaustion, with sellers not willing to extend beyond key support levels. For example, the wave of sell pressure cooled off near its August support levels.
The same level previously acted as resistance on multiple occasions in the past.
Note that prices did push below the support level aided by the liquidation sweep within the same level. However, a rebound allowed prices to snap back by almost 4% in the last 24 hours.
Shifts in Crypto News as Market Sentiment Drops to Extreme Fear
Another major reason why crypto is up today was market sentiment. The market concluded the week with the fear and greed index in extreme fear territory.
It dropped as low as 22 points on Friday and recovered slightly to 23 points at the time of observation. The last time market sentiment fell to such low levels was in April 2025.
The dip in sentiment after another week of bearish momentum was noteworthy. This is because smart money tends to make a comeback when there is blood on the streets and sentiment drops to weakest levels.
While all the above factors may have contributed to the slight uptick, there was one major reason why crypto is up today. That factor is the expectations of a rate cut in a matter of days.
The CME FedWatch tool recently signaled that there will be a 100% probability of a rate cut that will be announced during the 29th October FED meeting.
At least one more rate cut is expected before the end of 2025.
Rate cut expectations have historically acted as a market catalyst and on most occasions the market rallies in the days ahead.
The actual FED meeting was slated to take place in 10 days, which may be enough time for the market to ramp up excitement.
Here are Some Key Confirmations to Keep an Eye Out For
The rate cut expectations might be the big catalyst that the market needs to achieve a comeback.
However, there are a few other signs to lookout for in the next few days that may support the recovery.
For starters, smart money tends to make the first move. Whale and institutional flows may thus be the first ideal place to look.
A bit of whale demand was observed after the market bottomed out but demand has been relatively weak.
Institutional buyers such as Strategy may also be at the forefront of the demand resurgence. Stablecoins may also hint at a major move.
Major mints occur just before a major rally. Interestingly, tether reportedly minted 1 billion USDT in the last 24 hours.
Although sell pressure appeared to have cooled down during the weekend, another bearish outburst should not be ruled out.
Read more on The Coin Republic
