Is the Crypto Market About to Experience a Correction?
Jakarta, Pintu News – The crypto market appears to be nearing a local peak, with some analysts predicting a possible correction after the upcoming Federal Open Market Committee (FOMC) meeting. Technical signals from the market suggest that the recent rally is starting to lose momentum.
Change of Focus from Bitcoin to Altcoins
An analyst under the pseudonym arndxt on X (formerly Twitter) pointed out that open interest in altcoins has surpassed Bitcoin for the first time since December.
This signals a shift in traders’ focus from Bitcoin to altcoins, with more funds now tied up in altcoin futures and options than the traditionally dominant Bitcoin. This change suggests that the market’s risk appetite is starting to overheat.
People are switching from the supposedly “safer” Bitcoin to more speculative bets. Similar events in the past have often coincided with the formation of local market peaks, raising concerns that speculative enthusiasm has reached unsustainable levels.
Read also: US Crypto News: Recession Canceled? Bitcoin and AI, 2 sectors in the spotlight!
Bitcoin’s Declining Linkage to Traditional Markets
Recent data shows that the correlation between Bitcoin and the Nasdaq has turned negative, with the coefficient reaching its lowest point since September 2024. “Bitcoin is clearly lagging behind technology,” said analyst Maartunn.
This trend is not just limited to the tech sector, but is also evident in CryptoQuant data which reveals that Bitcoin’s correlation with the S&P 500 and gold is also weakening.
This suggests that Bitcoin is no longer moving in tandem with broader risk markets or as a traditional hedge. Nonetheless, analysts caution against interpreting this signal as the end of the cycle. Instead, some argue that it indicates a typical reset within a broader uptrend.
Read also: Failed altcoins confuse Treasury strategy, says David Bailey
Future Prospects of the Crypto Market
Ted Pillows, an analyst, emphasized that during a bull cycle, a drawdown of about 20%-30% is a normal part of the trend before momentum picks back up. “It’s not the first time there’s been a dip before the next leg,” he said. With rising altcoin speculation, seasonal warning signals, and Bitcoin’s weakening relationship with traditional markets, all point to a fragile setup.
While some see this as a sign that a local top is forming, others argue that it may simply mark a correction that often precedes another rally. The coming weeks will likely determine the direction the market will take next.
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*Disclaimer
This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.
Reference
- BeInCrypto. Crypto Market: Top FOMC Correction Signals. Accessed on September 16, 2025
- Featured Image: Generated by Ai
