Fed Rate Cut Expectations Drive Cryptocurrency Market as Altsease Indicators Peak


TLDR

  • Altsease indicators hit the highest levels in 2025 and reach 76 out of 100
  • Total Altcoin Market Cap is constantly approaching $ 1.63 trillion
  • Prediction markets show 15-16% chance of aggressively 50 bps fed interest on September 17
  • Bitcoin trade over $ 113 750 while the total crypto market reaches $ 3.88 trillion
  • Dogecoin, Avalanche and other altcoins showing strong daily performance

The Cryptocurrency market shows strong signs of a growing “altar season” when several indicators reach their highest levels this year, coincide with growing expectations on a Federal Reserve Interest reduction next week.

Data from several tracking services confirms the Altcoin market speed. Blockchain Center and Coinglass Altcoin Season indexes both show points of 76 out of 100, while Coinmarketcap’s indicator is at 67. These are the highest readings since December.

The technical definition of an altar season is when 75% of the 50 best crypto assets surpass Bitcoin over a 90-day period. This pattern usually emerges under bull markets when less cryptocurrencies experience rapid price growth compared to bitcoin.

Financial data provides additional evidence of Altcoin force. The total Altcoin market value that excluding Bitcoin and Stablecoins has reached $ 1.63 trillion at $ 1.63 trillion, approaching its heights in November 2024 of $ 1.64 trillion and approaching All-Time High of $ 1.7 trillion in November 2021.

Fed Rate lowers expectations

Market attention is now focused on the Federal Reserve’s upcoming meeting on September 17. Prediction markets have recently started pricing in the possibility of a more aggressive interest rate reduction than previously expected.

The CME group’s Fedwatch tool now shows almost 10% chance of a cut of 50 basic points, which would lower the target frequency to 375-400 points. This opportunity was not considered viable before September 5.

Other prediction markets show even stronger expectations. Kalshi trader prices a 16% chance of a cut that is greater than 25 points, with over $ 41 million in trade volume. The polymarket shows similar odds of 15.3%, with an even larger $ 91 million in accumulated bets.

Interest rate cuts usually benefit assets as cryptocorate by redirecting capital from government bonds to higher risk, potentially higher reward investments. The Federal Reserve has hesitated to lower prices since the last decrease in December 2024.

New financial data can affect these changed expectations. Producer price index (PPI) data came in at 2.6%, lower than both previous and expected 3.3%. This, in combination with the latest work reports, has changed the market term to expect more aggressive monetary relief.

Market results

Bitcoin currently deals over $ 113 750which represents a profit of 2% from September 8 the closing price of $ 111,500. The total Cryptocurrency market value amounts to $ 3.88 trillion, an increase of 1.5% from the previous day’s closure.

Market observers have noted an interesting trend in the latest price measure. While Bitcoin has historically driven the overall crypto market index, there are signs of decoupling when Bitcoin’s market dominance decreases and Altcoins receive market shares.

Several altcoins have shown strong performance over the past 24 hours. Dogropa Has added more than 5% to reach $ 0.25, while Avalanche has increased almost 11% to $ 29, the highest level since January.

Other top artists include hyperliquid (hype), stellar, litcoin and toncoin, all get more than 3% each. These winnings further support the Altseason story.

Crypto Trader Daan Crypto Trade observed that the total altcoin market value is approaching its 2021 all the time. He suggested that when altcoins enter into price discovery, it can trigger wider market voltage and attract new participants.

Another market indicator that supports potential interest rate cuts was an unusual USD 2 billion -coin by Tether, similar to what happened in December 2024 during the last interest rate reduction.

The Cryptocurrency market is likely to remain focused on the Federal Reserve’s upcoming decision, with all interest rates that potentially provide additional fuel for both bitcoin and altcoin price measures in the coming weeks.





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *