Crypto Markets Edge Higher After Fed Rate Cut, Analysts Stay Cautious
Major cryptocurrencies—including Bitcoin (BTC $115,778), Ether (ETH), XRP ($3.00), and Solana (SOL $237.21)—gained momentum following Wednesday’s Federal Reserve interest-rate cut.
Despite the uptick, analysts remain cautious. “The Fed rate cut gave crypto a near-term boost, but the rally is not yet clean,” said Timothy Misir, head of research at BRN. While institutional flows support the market, exchange inflows and a single-day ETF outflow indicate some profit-taking. Misir suggested a $115,000–$115,500 bitcoin price band for tactical risk management.
Futures and Derivatives Trends
BNB, AVAX, and DOT saw double-digit gains in futures open interest (OI), corresponding with 5–9% price increases. BTC’s OI in USD and USDT perpetuals declined, indicating limited participation from derivatives traders. BCH, TRX, BNB, XMR, AVAX, and SUI displayed positive open interest-adjusted cumulative volume delta, signaling strong buying pressure. Annualized funding rates for smaller tokens remain around 10%, showing no signs of overheating.
On the CME, Ether futures OI nears 2 million ETH, while BTC positioning remains light. SOL offers higher carry with a 17% annualized return. Deribit shows a neutral-to-bearish bias for BTC options, while ETH options are bullish. OTC trades included demand for the $116K BTC call (Sept. 19) and $100K put (Oct. 31).
Altcoins and DeFi Sector
Altcoins rebounded after oversold RSI readings, with several posting gains above 10%. Ether.fi (ETHFI) climbed 12% to $1.64, its highest since January, while BNB surpassed $1,000 for the first time. Bitcoin consolidated above $110,000, moving toward $117,300, and BTC dominance slipped to 56%, reflecting increased appetite for altcoins.
The DeFi sector also rose, with total value locked (TVL) across protocols reaching $170 billion, the highest since April 2022. Hyperliquid’s Layer-1 blockchain hit $2.77 billion TVL (+3.88%), and Sui TVL increased 3% to $2.1 billion.
