The week opens with Bitcoin showing modest strength, trading above $116,500 after a 0.7% daily increase. Ethereum is nearly unchanged at $4,660, while XRP is down 1% at $3.06 and Solana has slipped 1.5% to $243.
Despite the softer start, the broader weekly picture remains positive. Most leading cryptocurrencies have recorded solid gains over the past seven days, with Solana, Dogecoin, Hyperliquid, and Avalanche all gaining double digits.
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Market Focus on the Fed
Attention this week is firmly on Wednesday’s Federal Reserve decision. Markets are widely expecting a 0.25% interest rate cut, though some participants see a possibility of a larger 0.5% move. While a “no cut” scenario is viewed as unlikely, the uncertainty surrounding inflation and the labor market adds an element of caution. The decision and accompanying remarks from Fed Chair Jerome Powell are expected to set the tone for risk assets, including crypto, for the weeks ahead.
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Calm Trading in Traditional Markets
US stock futures were steady in early trading, showing investor focus on the upcoming policy announcement. Futures linked to the Dow Jones, S&P 500, and Nasdaq 100 all hovered around unchanged levels.
The Nasdaq recently closed at a record high, driven by optimism in the technology sector and expectations of easier monetary policy. Analysts suggest that weak labor market data combined with higher consumer prices leave the Fed with a complicated policy decision, but markets remain confident that a rate cut is imminent.
Outlook for Crypto Markets
Last week’s rally lifted total cryptocurrency market capitalization back above $4 trillion, though momentum has cooled as traders wait for policy clarity. Analysts caution that the upcoming decision could prompt short-term volatility, but also note that looser monetary conditions would generally support risk assets in the longer term.
Bitcoin continues to dominate over half of the total market and remains well above the $110,000 threshold, while Ethereum holds comfortably above $4,500. Even with today’s mixed trading, the broader market trend remains constructive, with most assets consolidating gains made in recent weeks.
