US Fed rate cut hopes fuel crypto rally; altcoin index hints at altseason

Cryptocurrency markets saw a surge in prices on Friday, with Bitcoin (BTC) briefly breaking the $116,000 mark for the first time since late August before stabilising just under $115,500. The rally in Bitcoin was mirrored by Ethereum (ETH), as both leading cryptocurrencies experienced significant gains amid positive market sentiment and strong institutional inflows. 

 

Overall, the market sentiment, analysts said, remains bullish in the short term. Additionally, the Altcoin Season Index rose to 67 from 29 last month, signaling stronger altcoin momentum that could potentially trigger an altseason soon.

Bitcoin price today

Bitcoin (BTC) touched a high of $116,317 but was unable to sustain momentum above that level. At last check, BTC was trading at $115,443, reflecting a 1.12 per cent increase over the past 24 hours. During the session, Bitcoin fluctuated between $113,453 and $116,317, according to data from CoinMarketCap. Bitcoin's daily trading volume surged to $52.17 billion, with its market capitalisation holding steady at $2.29 trillion, reinforcing its position as the world's largest digital asset.

 

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Vikram Subburaj, CEO of Giottus, attributed the rally in part to rising hopes for a rate cut by the US Fed after US CPI data came in line with expectations. This reinforced hopes of a September US Fed rate cut. 

 

Further, derivatives positioning remains cautious, as the options skew is tilted toward puts. Liquidation maps show long leverage stacked just under $110,000. This, Subburaj believes, suggests fragility beneath the surface even as ETFs continue to draw steady inflows. The CPI data has bought bulls some breathing room.

 

“However, Bitcoin should clear $115,000 decisively or else it risks repeating the familiar ‘data trap’ where early gains fade into reversals,” said Subburaj.

 

Echoing a similar view, Edul Patel, CEO of Mudrex, said that with a steady inflation metric and softer PPI figures, the market has likely factored in a 25 bps rate cut next week. Moreover, the $741 million inflows into Bitcoin ETFs have also added to the upward pressure.

 

Riya Sehgal, research analyst at Delta Exchange, on the other hand, attributed the rally to strong institutional inflows. Notably, US spot Bitcoin ETFs alone added over $552 million on September 11, lifting total AUM to more than $148 billion.

Bitcoin faces resistance at $116,344

Technically, BTC is showing strength above all major EMAs, with the 20-day EMA around $113,650 acting as immediate support. However, the $116,344 zone, analysts said, has emerged as a key resistance level, where profit-taking has been visible.

 

"A breakout above this level with sustained volume could open the path towards $118,500–$120,000, while a rejection may trigger a retest of the $113,500–$112,200 range," said Sehgal.

 

Patel, on the other hand, believes if the flagship coin BTC manages to close above the current levels, a bullish trajectory would be confirmed, taking the asset towards $118,000. “Meanwhile, the support has also moved up to $113,700, forming a strong base,” said Patel.

Ethereum gains; altcoins mixed

Ethereum also saw impressive gains, reflecting a broader bullish trend across the cryptocurrency market. At last check, ETH was trading at $4,523.23, marking a 2.56 per cent increase in the past 24 hours. Ethereum’s price fluctuated between $4,370 and $4,534 during the day. Despite the recent gains, ETH remains nearly 9 per cent below its recent peak of $4,953, recorded on August 25 this year.

 

The broader altcoin market also showed strength. Ondo (ONDO), Aerodrome Finance (AERO), Raydium (RAY), Pudgy Penguins (PENGU), Solana (SOL), Jupiter (JUP), Pyth Network (PYTH), Bonk (BONK), MemeCore (M), Pump.fun (PUMP), Dogecoin (DOGE), Virtuals Protocol (VIRTUAL), Chainlink (LINK), Kaspa (KAS), FLOKI (FLOKI), Hedera (HBAR), Fartcoin (FARTCOIN), Curve DAO Token (CRV), dogwifhat (WIF), Immutable (IMX), Pendle (PENDLE), and Tezos (XTZ) were among the gainers in the altcoin space, rising up to 9 per cent, according to CoinMarketCap data.

 

Conversely, MYX Finance (MYX) emerged as the top laggard, registering a fall of 25 per cent. Four (FORM), Worldcoin (WLD), Story (IP), XDC Network (XDC), Conflux (CFX), Avalanche (AVAX), and Mantle (MNT) were the other laggards, falling up to 11 per cent.

 

According to the CoinDCX Research Team, as the bulls gained dominance, over $104 million was liquidated—out of which $101.67 million were in short positions. After the success of the Bitcoin spot ETF, BlackRock is now exploring the possibility of a tokenized ETF. The launch of $DOJE trading has been delayed to Friday, September 12, while Fidelity’s Solana ETF and Canary’s XRP and Hedera ETFs are now listed on the DTCC platform.