Bitcoin Hits Highest Level Since Late August; Altcoins Gain Momentum – 17/9/2025
Bitcoin (BTC) surged to its highest level since August 22 on Wednesday, briefly reaching $117,300 before settling around $116,400. The cryptocurrency’s recent moves come ahead of the U.S. Federal Reserve’s interest-rate decision at 18:00 UTC, where a 25-basis-point cut is widely anticipated.
Notably, bitcoin’s upward movement stalled at a key “CME gap”—the difference between where bitcoin futures close on a Friday and reopen on Sunday. With this gap now filled, analysts expect BTC to consolidate within a range above critical support at $110,000. This stability could redirect capital toward altcoins.
According to CoinMarketCap data, bitcoin dominance has dropped to 57%, the lowest since January, indicating increased market appetite for speculative altcoin positions amid a period of low BTC volatility.
Derivatives and Market Sentiment
BTC futures open interest across major exchanges climbed to $32 billion over the past week. At the same time, the three-month annualized basis has narrowed to roughly 6–7% on Binance, OKX, and Deribit, making the carry trade only marginally profitable. While rising open interest points to heightened market engagement, the narrowing basis suggests weakening directional conviction, particularly on the bullish side.
Options data presents a nuanced picture: the BTC Implied Volatility Term Structure shows an upward-sloping curve, implying higher long-term volatility expectations. Yet, shorter-term metrics indicate bearish sentiment, with the 25-delta skew chart showing a flat or slightly negative trend for one-week and one-month options—traders are paying more for puts than calls to hedge against declines.
Interestingly, the 24-hour put-call volume chart reflects the opposite: call volume exceeds puts, suggesting recent positioning for a price increase. Funding rates across major perpetual swap venues are also rising, with BTC annualized funding at 17%. If this trend continues, it would point to growing bullish conviction.
Altcoins Take the Spotlight
While BTC continues to trade in a tight range around $116,000, altcoins are capitalizing on the market’s low volatility. Bitcoin dominance has slid to an eight-month low of 57%, signaling that capital is flowing into more speculative tokens.
The average relative strength index (RSI) for crypto tokens sits at 45.47, edging toward oversold territory. This suggests many altcoins are well-positioned for upside moves. Historical context shows BTC dominance fell as low as 33% in 2017 and 40% in 2021, indicating further potential for altcoin gains.
Market watchers note that much depends on bitcoin’s next major move. Should BTC test record highs near $124,000 and break out on strong volume, capital may rotate back into the largest cryptocurrency. Some analysts, including high-profile figures like Eric Trump, have speculated that BTC could reach $175,000 by year-end.
