The crypto market is building momentum as we approach the Federal Reserve’s interest rate decision, set to be revealed later today. The markets have nearly fully priced in a 25 basis points cut. In the midst of this anticipation, Bitcoin remains steady above $117,000, while Ethereum is making a comeback toward the $4,500 level. Although the rate cut is widely anticipated, experts suggest that US Federal Reserve Chair Jerome Powell’s forward guidance will be pivotal in deciding if these levels will rise further or experience a corrective pullback.
Vikram Subburaj, stated that traders are preparing for a 25 basis points cut to kick off the long-anticipated easing cycle. “The setup appears positive as long as $114,000 remains intact, although short-term fluctuations around the announcement are probable. If stablecoin inflows continue, exchanges have the liquidity to support an upside push once policy clarity emerges,” he explained. The primary concern, he noted, is if the market can handle the $4.5 billion in token unlocks scheduled for September while continuing to channel investments into Bitcoin and Ethereum. If that occurs, the subsequent upward movement could emerge rapidly. At the latest update, Bitcoin was priced at $117,310.12, reflecting a decrease of 1.22 percent in the last 24 hours. The daily trading volume increased to $47.92 billion, while the market capitalisation held firm at $2.23 trillion, solidifying its status as the largest cryptocurrency globally. Throughout the day, Bitcoin’s price varied from $114,813 to $117,283.
“Conversely, gold reaching all-time highs may enhance Bitcoin’s momentum. A sustained move above $118,000 would confirm bullish sentiment and pave the way for Bitcoin to test new highs in the coming weeks,” Patel stated. Bitcoin has seen an increase of nearly 5 per cent in the past week, testing resistance at approximately $116,850 after breaking out of a significant triangle near $116,200. Riya Sehgal, indicates that a clear close above that level may lead to additional gains toward the $118,400–$119,250 range. If Bitcoin encounters rejection, support levels are anticipated at $116,250, $115,200, and possibly down to $112,500. Ethereum is currently trailing Bitcoin. The price action is still confined within a descending triangle, with $4,470 identified as a crucial support level and $4,550 representing the resistance that needs to be surpassed to regain momentum. ETF flow data highlights this divergence—Bitcoin funds experienced over $290 million in net inflows on September 16, whereas Ethereum ETFs faced outflows surpassing $60 million.
As of the latest update, Ethereum is valued at $4,547, reflecting a 0.78 percent increase in the last 24 hours, accompanied by a daily trading volume of $35.91 billion. Throughout this timeframe, ETH fluctuated within a tight range of $4,428.33 to $4,554. Reports says that Ethereum’s short-term momentum is still positive, with significant resistance near $4,800 and support found between $4,200 and $4,400. In the wider altcoin market, MYX Finance has taken the lead with an impressive 44 percent surge. Other notable gainers included Story, Aethir, Sky, PancakeSwap, Filecoin, Aerodrome Finance, dogwifhat, Optimism, SPX6900, Lido DAO, Bonk, Pendle, Kaspa, Hyperliquid, Immutable, Sui, and BNB, all of which experienced increases of up to 9 percent today. On the other hand, several altcoins saw considerable declines. Pump.fun, Ethena, World Liberty Financial, MemeCore, TRON, Toncoin, UNUS SED LEO, Ondo, PAX Gold, Tether Gold, Pi, and Artificial Superintelligence Alliance were among the top laggards, experiencing declines of up to 6 percent on Wednesday.
The US Securities and Exchange Commission has delayed its decision on the Truth Social Spot Bitcoin ETF and is now inviting public feedback on the proposal. Currently, the UK is expected to complete a regulatory agreement with the US focusing on stablecoins and improved oversight.
In other institutional developments, Bitwise has submitted a filing for a Stablecoin & Tokenisation ETF aimed at investing in a mix of crypto assets and equities. Tuttle Capital has submitted filings for three new products: the Bonk Income Blast, the Litecoin Income Blast, and the SUI Income Blast. In a notable tech development, Google has announced a collaboration with Coinbase to enable cryptocurrency payments through its upcoming AI-powered payments system.