Bitcoin, altcoins stage modest comeback as US Fed rate decision looms

Crypto markets opened the week on a strong note as buying interest strengthened across major cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), ahead of the US Federal Reserve’s interest rate decision scheduled for Wednesday, December 10.  The positive sentiment spilled over into the altcoin space, with Solana (SOL), Render (RENDER), XRP (XRP), Cardano (ADA), Pepe (PEPE) and Sui (SUI) staging steady recoveries on the charts.

 

Analysts said investors are firmly focused on this week’s key macro event — the Federal Reserve’s rate decision. “Markets are largely pricing in a 0.25 per cent rate cut ahead of Wednesday’s FOMC meeting,” said Harish Vatnani, head of trade at ZebPay.

 

Historically, Bitcoin tends to encounter downward pressure ahead of FOMC announcements as traders brace for policy cues and potential shifts in tone from Fed officials. This, Vatnani said, often triggers sharp intraday swings as the market recalibrates expectations.

 

That said, Piyush Walke, derivatives research analyst at Delta Exchange, cautioned that traders should remain alert, as potential price spikes in either direction may occur this week in the run-up to the US interest rate decision.

 

“With several major data releases scheduled, market volatility is likely to persist. Crypto markets are especially focused on the Fed’s critical rate-cut decision, expected on Wednesday. Traders should look for clear breakout confirmations above key resistance levels, as upcoming policy signals will likely determine whether the current move turns into a sustained rally or a short-term pullback,” Walke said.

 

Following a sharp fall, Bitcoin rallied nearly 16 per cent to $94,150, forming an ‘Ascending Channel’ pattern, albeit on declining volumes. At the time of writing, Bitcoin was trading at $91,545.26, up 2.43 per cent over the past 24 hours, on a trading volume of $53.03 billion. The token moved between $87,799 and $91,815 during the session, according to CoinMarketCap. Despite recent gains, BTC remains about 27 per cent below its all-time high of $126,198, hit on October 7. Its market capitalisation stands at $1.82 trillion, keeping it below the $2 trillion mark but firmly ahead as the largest cryptocurrency by market value.

 

At current levels, analysts believe $93,000 remains a key technical resistance for BTC. “To further rally, the asset needs to break, close and sustain above the psychological resistance of $100,000,” said Vatnani.

Ethereum faces resistance at $3,250

Ethereum mirrored Bitcoin’s momentum, trading above the $3,100 mark. The token last exchanged hands at $3,133, up 3.13 per cent over the past 24 hours, on a turnover of $25.3 billion. During the session, ETH fluctuated between $2,930 and $4,953, according to CoinMarketCap. Its market capitalisation stood at $378.06 billion.

 

Analysts noted that $3,250 remains a key resistance level for Ethereum, having acted as a barrier on multiple occasions.

Altcoin movers and shakers

Gainers included DoubleZero (2Z), Zcash (ZEC), Canton (CC), Bittensor (TAO), Ethena (ENA), SPX6900 (SPX), NEAR Protocol (NEAR), Artificial Superintelligence Alliance (FET), Mantle (MNT), ether.fi (ETHFI), Injective (INJ), Kaspa (KAS), Toncoin (TON), Pump.fun (PUMP), Ethereum (ETH), Pepe (PEPE), Sui (SUI), OKB (OKB), Telcoin (TEL), Solana (SOL), Render (RENDER), XRP (XRP), Cardano (ADA), KuCoin Token (KCS), Lido DAO (LDO), Sky (SKY), Aave (AAVE), Aptos (APT) and Avalanche (AVAX), which rose up to 9 per cent.

 

Losers included Monero (XMR), MemeCore (M), MYX Finance (MYX), Hyperliquid (HYPE), Bonk (BONK), Aster (ASTER), Story (IP), Pi (PI), Kaia (KAIA), VeChain (VET), Morpho (MORPHO), Shiba Inu (SHIB), Nexo (NEXO) and OFFICIAL TRUMP (TRUMP), which declined up to 3 per cent. 

Top trending cryptocurrencies

On CoinMarketCap, Bitcoin (BTC), Yooldo (ESPORTS), Ethereum (ETH), DO YouR meme (DOYR), DeMCP (DMCP), XRP (XRP), Solana (SOL), SUPERFORTUNE (GUA), Kyuzo’s Friends (KO) and Folks Finance (FOLKS) were among the top trending coins.