Bitcoin Tops Multi-Week High as Altcoins Surge Ahead of Fed Decision – 17/9/2025
Bitcoin (BTC) briefly reached $117,300 on Wednesday, its highest level since Aug. 22, before pulling back to around $116,400. Traders are closely watching the Federal Reserve’s interest-rate decision at 18:00 UTC, where a 25-basis-point cut is widely anticipated.
The early surge coincided with the closing of a notable “CME gap,” the difference between Friday’s futures close and Sunday’s open. With this gap filled, BTC may consolidate above $110,000 support, potentially shifting capital into altcoins.
Bitcoin dominance has dipped to 57%, the lowest since January, reflecting growing interest in speculative altcoins amid low BTC volatility, according to CoinMarketCap.
Market and Derivatives Insights
BTC futures open interest rose to $32 billion last week, while the three-month annualized basis narrowed to 6–7% across Binance, OKX, and Deribit, indicating active trading but weaker bullish conviction. Options data is mixed: long-term implied volatility remains elevated, short-term skew shows slight bearishness, yet 24-hour call volumes suggest bullish positioning. Annualized funding rates for BTC are at 17%, signaling growing directional confidence.
Altcoins on the Rise
Altcoins are benefiting from BTC’s range-bound trading. The average token RSI of 45.47 suggests many are nearing oversold territory and primed for upside. Historically, BTC dominance has fallen to 33% in 2017 and 40% in 2021, leaving room for altcoin rallies.
Market participants will watch BTC closely near $124,000. A breakout on strong volume could redirect capital back to bitcoin, with some analysts projecting a year-end target of $175,000.
