What happened?
Markets turned bearish today: most crypto sectors fell even though expectations of a U.S. rate cut grew. Bitcoin slipped about 1.4% to below $112,000 and Ethereum dropped roughly 2.1% under $4,200. Only AI tokens bucked the trend with a small overall gain (around 0.46%), led by ChainOpera AI surging about 26.6%.
Who does this affect?
Crypto traders and investors are the most directly impacted as cautious sentiment limited buying despite dovish Fed comments. Large holders and institutions monitoring macro signals may hold back from taking on more risk even with high odds of an October rate cut. Projects and tokens tied to the AI theme saw outsized moves, so sector-focused traders benefited while broader market participants felt the pullback.
Why does this matter?
The gap between rising Fed-cut odds (around 94–96%) and falling crypto prices shows that macro cues alone aren’t enough to spark a sustained market rally. Continued trader caution can sap liquidity and amplify volatility, making price swings sharper for both big coins and smaller altcoins. If dovish expectations persist but risk appetite stays muted, we could see short-term downside pressure overall, with isolated rallies in story-driven sectors like AI.