Altcoins Surge as Fed Signals Rate Cut; Bitcoin Eyes $130K Upside

Ethereum, Solana Lead Crypto Rally as Market Rises on Fed Rate Cut Signals

  • Altcoins, including Ethereum and Solana, led gains as cryptocurrency markets rebounded mid-week.
  • Federal Reserve signals potential interest rate cuts, boosting positive sentiment in crypto markets.
  • Solana and Ethereum saw stronger price increases compared to Bitcoin, which posted more modest gains.
  • Glassnode data shows traders expecting further upward movement in Bitcoin, based on options market activity.
  • Overall market capitalization climbed to about $3.92 trillion amid significant liquidation activity.

The cryptocurrency market showed a broad recovery during early Wednesday trading following comments from Federal Reserve Chairman Jerome Powell, who indicated that there may be room for additional interest rate cuts. This renewed optimism helped drive gains across major cryptocurrencies and supported a general uptick in investor sentiment.

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According to the CME Group’s Fed Watch Tool, markets are now pricing in a 97.8% chance of a 25 basis point cut at the upcoming Federal Open Market Committee (FOMC) meeting. The overall cryptocurrency market value increased by 1.3%, reaching approximately $3.92 trillion. Price data showed Solana (SOL) rising over 4% to trade at about $202, while Ethereum (ETH) gained 3.5%. Bitcoin (BTC) advanced 0.7% to around $112,000.

On-chain analytics firm Glassnode reported notable concentration in net premium for Bitcoin options between $115,000 and $130,000 strike prices. The firm stated, “Despite the futures flush, call demand dominates, implying investors see the drawdown as a leverage reset.” This suggests that traders expect further gains in Bitcoin prices.

Among additional top cryptocurrencies, Binance Coin (BNB) advanced 1.6%, while Dogecoin (DOGE), XRP, and Cardano (ADA) each posted gains of more than 2%. According to CoinGlass data, the past 24 hours saw over $378 million in liquidations across digital asset markets.

In equity markets with crypto exposure, shares of Strategy (MSTR) ticked up by 0.9% pre-market, Bitmine Immersion Technologies (BMNR) added more than 2%, and Coinbase (COIN) was up 1.6%, reflecting the positive trend across digital assets.

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