The cryptocurrency market cap rose 1.4% over 24 hours to $2.39 trillion on Thursday, driven by a broad rally in altcoins. Aster, the native token of the perp DEX Aster, led the charge with a nearly 10% surge, while other tokens like Hyperliquid and World Liberty Financial's token also posted strong gains of 8.9% and 7.6%, respectively. Hedera, Zcash, and Toncoin each climbed more than 5% during the same period.
The altcoin rebound came as a partial recovery from losses triggered by Wednesday's strong U.S. labor market data. The economy added 130,000 jobs in January, dampening expectations for Federal Reserve interest rate cuts and signaling ongoing economic strength.
Tim Sun, senior research analyst at HashKey Group, cautioned that the market has not yet seen a structural trend reversal. He noted that market sentiment remains fragile, and while buying support is strengthening, the risk of further downward movement cannot be ruled out in the short term.
Friday's inflation print has become a key focus for crypto traders. The delayed January Consumer Price Index data could influence rate cut expectations, with forecasts predicting a reduction from December to 2.5% year-over-year. Sun described the current environment as a bottoming-out phase, where volatility and downside potential begin to converge.
The broad-based altcoin recovery indicates renewed buying interest after recent declines. However, analysts emphasize that sustained upward momentum will require improved macro conditions and clearer signals on Federal Reserve policy direction in the coming months.