Crypto Market Sees Significant Gains Amid Anticipation of Federal Reserve Rate Cut
The cryptocurrency market experienced notable gains with the total market capitalization rising 2.6% to $3.25 trillion. Among the top 100 coins, 92 showed positive movement, including 9 of the top 10, as the 24-hour trading volume remained around $147 billion.
Bitcoin (BTC) traded near $92,694, marking an increase of about 2.3%, with an intraday range between $90,040 and $94,489. Analysts noted resistance at approximately $93,200 and support in the $90,000 to $91,000 range, with the potential for a rally towards $98,000 to $110,000 if momentum persists. Ethereum (ETH) also showed strength, trading near $3,122, up roughly 6.6% on the day, and achieving a 7-day gain around 8.6%. The ETH supply is at a 10-year low, creating a favorable setup for rallies, with possible moves toward $3,400 to $3,600.
Investors are cautiously awaiting the US Federal Reserve's rate cut decision. Robin Singh, CEO of Koinly, stated that BTC could consolidate within a $90,000 to $95,000 range, with the bottom near $90,000, although macroeconomic catalysts are necessary for further growth. The crypto market sentiment improved moderately, as reflected in the Fear and Greed Index rising to 30 from 25.
In terms of investment flows, US Bitcoin ETFs recorded $151.74 million inflows, bringing the total net inflow to $57.71 billion, with 8 of 12 BTC ETFs showing inflows. However, BlackRock saw a $28.76 million outflow. US Ethereum ETFs observed $177.64 million inflows, totaling $13.09 billion in net inflows, led by Fidelity with $51.47 million, Grayscale with $45.19 million, and BlackRock with $35.29 million.
Regulatory developments include the OCC Interpretive Letter 1188, which now permits national banks to act as intermediaries in crypto trades and conduct riskless principal crypto-asset transactions.
In institutional moves, Strive Asset Management announced a $500 million preferred stock offering aimed at acquiring additional BTC. The firm currently holds 7,525 BTC valued at approximately $696 million.
Notably, Changpeng Zhao warned of a potential major BTC rally in 2026, suggesting the possibility of a crypto supercycle.
