The crypto market is shifting into high gear a few days before a possible Fed interest rate cut. Total market capitalization is up 2.1 percent compared to the previous day, just above the $4 trillion mark.
The Bitcoin price is up around two percent to $114,000, almost $10,000 below the record high set in August. The leading cryptocurrency also gained around three percent week-on-week.
Altcoins are also showing signs of movement. Ethereum is up two percent on the day, and XRP is once again just above the $3 mark. BNB, Solana, and Cardano are still snatching price gains of almost two percent, while Dogecoin is the top performer among the ten largest cryptocurrencies with a four percent increase.
The highest price gains among the 100 largest cryptocurrencies within the past 24 hours are Mantle (18 percent), Pump.fun (13 percent), and Avalanche (10 percent).
The Crypto Fear and Greed Index continues to indicate a “neutral” sentiment among investors, but has gained five points compared to the previous day, currently at 54.
The fact that risk appetite is slowly increasing ahead of the important Fed meeting next week is also reflected in the Altcoin Season Index, which, at 78 points, has not only reached a new annual high but also marks the beginning of an altcoin season, according to data from Blockchaincenter. Bitcoin dominance, in comparison, has fallen by two percent month-on-month.
This likely also includes the expectation of interest rate cuts by the US Federal Reserve on September 16 and 17. Weak labor market data has recently significantly increased the probability of this. A cut of 50 basis points is expected. Historically, every one percent rate cut has correlated with a 15 to 20 percent increase in the Bitcoin price within six months.