Crypto Markets Rise After Fed Rate Cut, Analysts Advise Caution
Major cryptocurrencies—including Bitcoin (BTC $115,778), Ether (ETH), XRP ($3.00), and Solana (SOL $237.21)—moved higher following Wednesday’s Federal Reserve interest-rate cut.
Despite the rally, some analysts remain cautious. “The Fed rate cut gave crypto a near-term lift, but the rally is not yet clean,” said Timothy Misir, head of research at BRN. While institutional flows remain supportive, exchange inflows and a single-day ETF outflow suggest some profit-taking. Misir recommended using a $115,000–$115,500 bitcoin price band for tactical risk management.
Futures and Derivatives Trends
BNB, AVAX, and DOT saw double-digit increases in futures open interest (OI) over 24 hours, corresponding with 5–9% price gains. BTC’s OI in USD and USDT-denominated perpetuals declined, suggesting derivative traders have been slower to join the rally. BCH, TRX, BNB, XMR, AVAX, and SUI all displayed positive open interest-adjusted cumulative volume delta, signaling strong buying pressure. Smaller tokens remain stable, with annualized funding rates around 10%.
On the CME, Ether futures OI is approaching 2 million ETH, while BTC positioning remains light. SOL offers higher carry with a 17% annualized return. On Deribit, 25-delta risk reversals show a neutral-to-bearish bias in BTC options, whereas ETH options remain bullish. OTC block trades included demand for the $116K BTC call (Sept. 19) and $100K put (Oct. 31).
Altcoin Rally and DeFi Gains
Altcoins rebounded after oversold RSI readings, with several gaining over 10%. Ether.fi (ETHFI) rose 12% to $1.64, its highest since January, and BNB surpassed $1,000 for the first time. Bitcoin consolidated above $110,000, heading toward $117,300, while BTC dominance fell to 56%, signaling growing investor interest in speculative assets.
The DeFi sector also advanced, with total value locked (TVL) across protocols reaching $170 billion, the highest since April 2022. Hyperliquid’s Layer-1 blockchain hit a record $2.77 billion TVL (+3.88%), and Sui TVL increased 3% to $2.1 billion.
