Aster, Hyperliquid, and Hedera Rise With Altcoin Recovery

Simply put

• Aster’s price has jumped roughly 10% in just a day, sparking a wave of gains across other altcoins like HyperLiquid, Hedera, and Zcash.
• Even with the market’s recent changes, Tim Sun from Hushkey noted that we’re in a “severe bottom phase” rather than experiencing a true turnaround.
• General sentiment in prediction markets remains low, with many anticipating declines in Bitcoin and Hyperliquid values.

The cryptocurrency market capitalization is gradually turning positive, particularly as altcoins showed a significant recovery in the last day.

Specifically, Aster, a token associated with the decentralized exchange Perps, has seen nearly a 10% rise over the past 24 hours, making it the top gainer among the 50 largest altcoins by market capitalization. Other tokens, such as Hyperliquid and World Liberty Financial, also saw increases of 8.9% and 7.6% respectively, according to CoinGecko data.

Additionally, the broader altcoin sector is climbing, with several tokens like Hedera, Zcash, and Toncoin posting gains over 5% in the same period.

Some of the losses triggered by a strong labor market report were countered by this rally in altcoins.

After the U.S. added 130,000 jobs in January, the probability for an interest rate cut has decreased, signaling to experts that the economy is robust. This development lessens the pressure on the U.S. Federal Reserve to lower interest rates.

Eyes are now on upcoming inflation data expected on Friday, which might boost the likelihood of a rate cut. Users on prediction markets, operated by Myriad, are generally expressing a pessimistic outlook, with only a 33% probability that rates will be cut by 25 basis points or more before July—a drop of 7% from earlier this week.

The cryptocurrency market capitalization increased by 1.4% in 24 hours, reaching $2.39 trillion as altcoin recovery continues, although experts advise a cautious approach.

Tim Sun, senior research analyst at HashKey Group, remarked, “There hasn’t been a shift in structural trends just yet.” He acknowledged that market sentiment is still fragile and potential downside risks remain for the short term, but ongoing data and capital flow seem to indicate growing buying interest.

Sun elaborated that even if further market corrections occur, the momentum of selling is likely to decrease once the market transitions to a “hard bottom phase,” where downside and volatility levels begin to synchronize.

Despite the altcoin surge, investor sentiment is still tinged with uncertainty, as many users forecast a 57% chance that Bitcoin could dip to $55,000 instead of reaching $84,000.

HyperLiquid’s tokens reached all-time highs earlier in the week. Still, the overall sentiment remains weak, with many contemplating that the token might fall to $26 rather than rise to $41, which has seen its probability increase to over 65% from below 60% earlier in the week.