The recent crypto selloff was driven by changing expectations around U.S. rate cuts, not a fundamental shift in the market. Bitcoin and Ethereum underperformed relative to altcoins, with broader market sentiment remaining fragile until major cryptocurrencies show recovery.

Stablecoin inflows are increasing as traders anticipate a 25 basis point interest rate cut from the Federal Reserve. With liquidity on centralized exchanges dropping, traders are focusing on USD stablecoins, indicating a shift in positioning ahead of potential market movements. Analysts suggest that macro factors could lead to a breakout in the crypto market, despite concerns over upcoming geopolitical events.