Major cryptocurrencies are enjoying a notable uptick following the Federal Reserve’s interest rate cut earlier this week. Bitcoin (BTC), Ethereum (ETH), and other significant coins like XRP and Solana (SOL) are seeing positive momentum, although financial analysts are urging caution regarding the sustainability of this rally.
Timothy Misir, head of research at BRN, indicated in a recent communication that while the Federal Reserve’s decision has provided a temporary boost to the crypto market, it may not signal a robust and lasting recovery. “Institutional flows appear generally supportive, yet a drop in exchange inflows and recent ETF outflows suggest a distribution phase amid market strength,” Misir noted. He recommended a bitcoin price range of $115,000 to $115,500 for traders to manage their risks effectively.
Futures data reveals that BNB, Avalanche (AVAX), and Polkadot (DOT) have experienced impressive growth, with open interest (OI) in futures climbing by double digits in the last 24 hours. Their respective price gains of 5% to 9% bolster the overall market performance. In contrast, Bitcoin’s perpetual futures OI in USD and USDT has declined, hinting that derivative traders may not be fully engaging with the current price rally.
Other cryptocurrencies such as Bitcoin Cash (BCH), TRON (TRX), Monero (XMR), and SUI are also showing positive signs with a cumulative volume delta that suggests strong buying pressure in the market. There’s a healthy momentum across the board, as evidenced by the steady annualized funding rates for speculative altcoins, which remain around 10%.
On the Chicago Mercantile Exchange (CME), the ether futures OI is approaching the 2 million ETH milestone, while Bitcoin futures positioning remains light. The three-month annualized basis for both BTC and ETH is below 10%, which offers traders a lower yield compared to Solana’s attractive 17% return.
In the options market, data from Deribit shows a neutral to bearish sentiment (put bias) for BTC options set to expire in March. Conversely, ether options indicate a bullish outlook across various expiration dates. Recent block trades on the OTC network Paradigm reveal strong interest in $116,000 call options expiring on September 19 and a $100,000 put option set to expire on October 31.
The altcoin sector has rebounded sharply, particularly following critical oversold signals. Ether.fi (ETHFI) leads this surge with a notable 12% rise in the last day, reaching a price of $1.64, marking its highest point since January. Meanwhile, BNB crossed the $1,000 threshold, reflecting robust momentum as it aims for new all-time highs.
Bitcoin is hovering around $117,300, holding firmly above significant support at $110,000. Interestingly, Bitcoin’s market dominance has dipped to 56%, its lowest since January, indicating a growing interest among investors in higher-risk assets.
The decentralized finance (DeFi) market has seen substantial benefits from the recent upward movement, with the total value locked (TVL) across different protocols reaching $170 billion—its highest since April 2022. Additionally, the layer-1 blockchain Hyperliquid achieved a record high of $2.77 billion, reflecting a 3.88% increase, while Sui’s TVL is up 3% to $2.1 billion.
Overall, the cryptocurrency market is experiencing a period of resurgence, driven by significant developments in both pricing and market sentiment. However, traders are encouraged to approach with caution as indications of potential market adjustments evolve.
