Bitcoin Range-Bound Post-Fed as Altcoins and Memecoins Struggle

Bitcoin remains confined within a tight range despite the U.S. Federal Reserve’s recent rate cut, while altcoins and memecoins fail to attract risk appetite amid evolving investor behavior.

The crypto market was choppy on Friday, with bitcoin (BTC $90,237.24) lingering between $88,000 and $94,000 over the past week, a period dominated by the Fed’s decision to cut interest rates by 25 basis points. Rate cuts are typically seen as bullish for risk assets like bitcoin, as they reduce the appeal of holding cash, pushing investors toward alternative returns.

However, neither bitcoin nor the broader crypto market followed the expected trend. BTC briefly dipped below $90,000 after the cut before climbing back toward the upper end of its range. The CoinDesk 20 Index is up 0.57% since midnight UTC.

Altcoins, meanwhile, remain under pressure. Tokens such as JUP ($0.2021), KAS ($0.04612), and QNT ($79.72) have suffered double-digit losses over the week.

Derivatives Positioning

• BTC’s 30-day implied volatility, measured by Volmex’s BVIV index, continues to decline, hitting its lowest level since Nov. 10, signaling expectations of choppy price action into year-end.
• Ether’s volatility index is at its lowest since late October.
• On Deribit, BTC and ETH put biases remain intact across all timeframes, while block flows show a preference for calendar spreads.
• In futures markets, ZEC’s open interest (OI) surged 16% to 2.28 million ZEC, nearing its record of 2.32 million. HYPE, SUI, and SOL also saw notable OI gains over 24 hours, reflecting renewed capital inflows. BTC and ETH OI has remained mostly flat.

Altcoin & Token Performance
Privacy coins continue to outperform, with zcash (ZEC $423.18) leading the altcoin market with a 9% gain in the past 24 hours. AAVE, HYPE, and LIDO also showed intraday recoveries, though weekly performance remains muted.

CoinMarketCap’s “altcoin season” indicator has dropped to a cycle low of 16/100, highlighting traders’ reluctance to chase speculative altcoins. Memecoins have been hit hardest, with CoinDesk’s Memecoin Index (CDMEME) down 59% year-to-date, compared with a 7.3% loss for the CoinDesk 10 (CD10).

The decline of memecoins, once the epicenter of hype-driven trading, reflects a shift in investor behavior. Retail-driven speculation has given way to more measured, institutional participation, including ETFs and digital asset treasury (DAT) strategies, favoring slow and steady price action over high-risk bets.