Major altcoins led a broad cryptocurrency market recovery on Wednesday, with tokens like Aster, Hyperliquid, and Hedera bouncing more than 5%. The rebound followed recent pressure from strong U.S. jobs data, which reduced immediate expectations for Federal Reserve interest rate cuts. However, analysts caution the market remains in a bottoming phase, and prediction market sentiment shows continued investor pessimism toward both Bitcoin and specific altcoins.
The cryptocurrency market posted a broad recovery, led by significant gains among major altcoins. The native token of perps DEX Aster surged nearly 10%, while Hyperliquid and World Liberty Financial bounced 8.9% and 7.6% respectively, according to data from price aggregator CoinGecko.
Other top 50 tokens including Hedera, Zcash, and Toncoin also posted gains exceeding 5%. This rally helped push the total crypto market cap up 1.4% to $2.39 trillion, undoing a portion of losses triggered by recent economic data.
Market pressure originated from a stronger-than-expected U.S. labor report, which experts said reduced the odds of a near-term Federal Reserve rate cut. All eyes are now on the upcoming inflation print, which could influence monetary policy expectations.
On prediction market Myriad, users assign just a 33% likelihood to a Fed rate cut of 25 basis points or more before July. This represents a 7% drop from earlier in the week, as shown by the platform’s data.
Despite the altcoin bounce, analysts maintain a cautious outlook. Tim Sun, senior research analyst at HashKey Group, stated, “The market has not yet seen a structural trend reversal.”
Sun explained the market is in a “grueling bottoming-out phase” where selling intensity is likely to fade. Investor sentiment remains fearful, with prediction markets reflecting continued pessimism.
Users on Myriad give a 57% chance that Bitcoin’s next major move will be down to $55,000 rather than up to $84,000. Sentiment for Hyperliquid’s HYPE token is also weak, with over a 65% probability assigned to a drop to $26 instead of a rally to $41.
