Crypto Market Surges as Major Coins Gain Ahead of Fed Rate Decision
Major Cryptocurrencies Rally Before Fed Rate Announcement
The cryptocurrency market is experiencing a notable upswing today, as leading digital assets such as Bitcoin, Ethereum, XRP, and Solana have recorded impressive gains. This market momentum occurs on the eve of the Federal Open Market Committee (FOMC) meeting, where the Federal Reserve is expected to announce the third rate cut of the year.
Significant Gains for Bitcoin and Altcoins
TradingView data indicates that Bitcoin, the market's flagship cryptocurrency, has increased by nearly 4%, surpassing the $94,000 mark. Bitcoin's rise from an intraday low of $89,500 positions it to potentially achieve a multi-week high of $95,000.
Altcoins are also benefiting from the market rally. Ethereum has surged 8%, while XRP and Solana have seen gains of 4% and 6%, respectively. As a result, the total cryptocurrency market capitalization has climbed to $3.18 trillion, marking a 4% increase today.
Anticipation of Fed Rate Cut Fuels Market Optimism
The current crypto market rally is occurring in anticipation of the upcoming FOMC meeting, where a rate cut by the Federal Reserve is anticipated. According to CME FedWatch, there is a 90% probability that the Fed will reduce rates by 25 basis points.
Additionally, the CFTC's recent pilot program allowing the use of cryptocurrencies like BTC, ETH, and USDC as collateral in derivatives markets is expected to enhance their adoption.
Market Liquidations and Future Outlook
CoinGlass data reveals that $289 million has been liquidated in the crypto market over the past four hours, primarily from short positions totaling $265 million. Meanwhile, $24 million in long positions were also liquidated.
Spencer Hallarn, GSR’s Global Head of OTC, commented that the current market environment is conducive to a "Santa rally," suggesting potential further gains. Hallarn noted that recent market corrections have eliminated excessive bullish sentiment, paving the way for a more stable recovery.
Market analysts, including Standard Chartered's Geoff Kendrick, have forecasted that Bitcoin could reach $100,000 by year-end, reflecting renewed optimism following recent downturns.
According to Polymarket data, there is a 49% chance of Bitcoin reaching $100,000 before the year concludes, with a 24% likelihood of hitting $105,000.