“Altcoins Show Strength as Markets Await Fed Rate Announcement”

Bitcoin Pauses Near Multi-Week High as Altcoins Gain Strength – 17/9/2025

Bitcoin (BTC) briefly climbed to $117,300 on Wednesday, its highest level since Aug. 22, before retreating to around $116,400. Market focus remains on the Federal Reserve’s upcoming rate decision at 18:00 UTC, where a 25-basis-point cut is widely expected.

The price surge coincided with the filling of a notable “CME gap,” the difference between Friday’s futures close and Sunday’s open. With the gap now closed, BTC may consolidate above key support at $110,000, potentially prompting more capital to flow into altcoins.

Bitcoin dominance has fallen to 57%, the lowest since January, signaling rising interest in altcoins amid a period of low BTC volatility, according to CoinMarketCap data.

Derivatives and Market Sentiment
BTC futures open interest rose to $32 billion this past week, while the three-month annualized basis compressed to 6–7% across Binance, OKX, and Deribit, suggesting higher activity but weaker bullish conviction. Options data is mixed: long-term implied volatility is elevated, but short-term 25-delta skew shows slight bearish sentiment, even as 24-hour put-call volume favors calls. Annualized BTC funding rates have also increased to 17%, pointing to growing directional confidence.

Altcoins Outperform
While BTC trades in a narrow range around $116,000, altcoins are seeing stronger gains. The average crypto token RSI sits at 45.47, indicating many altcoins are near oversold levels and primed for upside. Historically, BTC dominance has fallen to 33% in 2017 and 40% in 2021, leaving room for further altcoin rallies.

The next major move will depend on BTC testing record highs near $124,000. A breakout on strong volume could rotate capital back into bitcoin, with some analysts projecting prices as high as $175,000 by year-end.

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