Crypto Markets See Gains Ahead of Expected Fed Rate Cut Amid Volatility
Cryptocurrency markets are showing buoyancy ahead of an anticipated 25 basis point rate cut by the Federal Reserve, sparking cautious optimism among traders.
Bitcoin is trading around $92,300, remaining range-bound between approximately $88,000 and $94,500. A breakout beyond these bounds could signal the market's next directional move.
Ether has outperformed Bitcoin, rising about 7% in the past 24 hours to near $3,318, boosted by the recent Fusaka upgrade.
Despite gains in major coins, altcoin sentiment remains weak, with CoinMarketCap's altcoin season index at a low 16 out of 100.
Implied volatility reflects expectations of modest near-term price moves, with Bitcoin showing around 67% volatility (corresponding to an expected 3.5% move over 24 hours), Ether at approximately 4.6%, and Solana and XRP hovering near 5%.
Bitcoin options reveal front-end volatility pricing and a slightly inverted curve, which could normalize if the Fed delivers a less impactful outcome.
Derivatives activity includes Ether strangles and straddles, alongside Bitcoin risk reversals, indicating trader positioning for potential volatility.
Open interest has increased for Ether to about 12.4 million contracts, while Cardano’s open interest stands near 1.80 billion ADA. Funding rates for Bitcoin Cash, Monero, and WLFI are deeply negative, suggesting bearish sentiment.
According to CME data, Ether futures open interest remains above 2 million, whereas Bitcoin’s open interest is at multi-month lows, highlighting different liquidity dynamics.
Among altcoins, HYPE is down 15%, STRK, KAS, and APT have fallen double digits, while FET has gained 9.3% in 24 hours despite being down about 80% year-to-date, indicating a rebound following the Fusaka upgrade.
