Bitcoin and altcoins bounce back ahead of Fed rate decision
Crypto markets kicked off the week with robust momentum as buying interest surged across major cryptocurrencies, including Bitcoin and Ethereum, in anticipation of the US Federal Reserve’s interest rate decision set for Wednesday, December 10. The positive sentiment has extended into the altcoin arena, as Solana, Render, XRP, Cardano, Pepe, and Sui are all showing consistent recoveries on their respective charts. Investors are intensely focused on this week’s crucial macro event — the Federal Reserve’s rate decision, analysts observed. “Markets are largely anticipating a 0.25 per cent rate cut ahead of Wednesday’s FOMC meeting,” stated Harish Vatnani. Historically, Bitcoin frequently experiences downward pressure ahead of FOMC announcements as traders brace for policy signals and potential shifts in tone from Fed officials. Vatnani observed that this often results in considerable intraday volatility as the market realigns its expectations.
In light of recent developments, Piyush Walke, a derivatives research analyst at Delta Exchange, advised traders to remain alert, as there could be potential price fluctuations in either direction this week leading up to the US interest rate decision. “With several significant data releases on the horizon, fluctuations in the market are expected to continue.” The crypto markets are eagerly anticipating the Fed’s crucial rate-cut decision, expected this Wednesday. “Traders should seek definitive breakout confirmations above significant resistance levels, as forthcoming policy signals will likely dictate whether the current movement evolves into a sustained rally or a brief pullback,” Walke stated. Following a notable decline, Bitcoin rebounded nearly 16 percent to hit $94,150, forming a ‘Ascending Channel’ pattern, even as trading volumes diminished. As of the latest update, the cryptocurrency is priced at $91,545.26, reflecting a 2.43 percent increase in the last 24 hours, with a trading volume of $53.03 billion. The token fluctuated between 87,799 and 91,815 throughout the session, as per reports.
Despite recent gains, the cryptocurrency is still approximately 27 percent below its all-time high of $126,198, reached on October 7. The market capitalisation stands at $1.82 trillion, remaining under the $2 trillion mark and reinforcing its position as the largest cryptocurrency by market value. At current levels, analysts assert that 93,000 continues to serve as a crucial technical resistance for BTC. “To further rally, the asset needs to break, close and sustain above the psychological resistance of 100,000,” stated Vatnani. Ethereum mirrored Bitcoin’s movement, trading above the $3,100 mark. The asset was last exchanged at $3,133, showing a 3.13 percent rise over the past 24 hours, accompanied by a trading volume of $25.3 billion. Throughout the session, there was notable volatility, with values fluctuating between $2,930 and $4,953, as per reports. The market value was noted at $378.06 billion. Experts highlighted that 3,250 continues to serve as a crucial resistance level for Ethereum, having functioned as a barrier on several occasions.
Among the notable gainers were DoubleZero, Zcash, Canton, Bittensor, Ethena, SPX6900, NEAR Protocol, Artificial Superintelligence Alliance, Mantle, ether.fi, Injective, Kaspa, Toncoin, Pump.fun, Ethereum, Pepe, Sui, OKB, Telcoin, Solana, Render, XRP, Cardano, KuCoin Token, Lido DAO, Sky, Aave, Aptos, and Avalanche, which saw increases of up to 9 percent. Among the notable losers were Monero, MemeCore, MYX Finance, Hyperliquid, Bonk, Aster, Story, Pi, Kaia, VeChain, Morpho, Shiba Inu, Nexo, and OFFICIAL TRUMP, each experiencing declines of up to 3 percent. On CoinMarketCap, the top trending coins included Bitcoin, Yooldo, Ethereum, DO YouR meme, DeMCP, XRP, Solana, SUPERFORTUNE, Kyuzo’s Friends, and Folks Finance.
