Crypto Markets Lifted by Fed Rate Cut, Analysts Advise Caution
Major cryptocurrencies—including Bitcoin (BTC $115,778), Ether (ETH), XRP ($3.00), and Solana (SOL $237.21)—gained traction following Wednesday’s Federal Reserve interest-rate cut.
Despite the rally, analysts remain cautious. “The Fed rate cut gave crypto a near-term lift, but the rally is not yet clean,” said Timothy Misir, head of research at BRN. He noted that institutional flows are broadly supportive, but exchange inflows and a single-day ETF outflow indicate profit-taking. Misir recommended using a $115,000–$115,500 bitcoin price band for tactical risk management.
Futures and Derivatives Activity
BNB, AVAX, and DOT saw double-digit increases in futures open interest (OI) over 24 hours, reflecting 5–9% price gains. Meanwhile, BTC’s OI in USD and USDT-denominated perpetuals declined, suggesting derivatives traders were not fully participating. BCH, TRX, BNB, XMR, AVAX, and SUI all showed positive open interest-adjusted cumulative volume delta, indicating strong buying pressure. Smaller speculative tokens remain stable, with annualized funding rates near 10%.
On the CME, Ether futures OI nears 2 million ETH, while BTC positioning remains light. SOL offers higher carry with a 17% annualized return. On Deribit, 25-delta risk reversals show neutral-to-bearish bias in BTC options, while ETH options are bullish across all tenors. Block trades on OTC network Paradigm highlighted demand for the $116K BTC call (Sept. 19) and $100K put (Oct. 31).
Altcoins and Market Highlights
Altcoins rebounded after oversold RSI readings, with several posting gains over 10%. Ether.fi (ETHFI) surged 12% to $1.64, its highest since January, while BNB broke the $1,000 milestone. Bitcoin consolidated above $110,000, edging toward $117,300, while BTC dominance slipped to 56%, reflecting growing appetite for speculative assets.
The DeFi sector benefited, with total value locked (TVL) across protocols hitting $170 billion, the highest since April 2022. Hyperliquid’s Layer-1 blockchain reached a record $2.77 billion TVL (+3.88%), and Sui TVL rose 3% to $2.1 billion.
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