The Crypto Market Is Hesitant to Rewrite Its Highs Until the FOMC

BTC Finds Balance as Market Awaits Fed’s Next Move

The crypto market cap reached $4.09 trillion over the weekend, approaching the peak levels set a month earlier. The initial impetus came from positive dynamics in the US stock market on Friday, thanks to technology sector stocks. However, retail traders used the moment to take profits in BTC and major altcoins, except for Solana, which went down on Monday. As a result, the market level fell back to $4.05 trillion.

Bitcoin ran into resistance at $116K, but the sell-off is drying up as it approaches $114K, turning the 50-day moving average back into a support line. It seems that Bitcoin has found a temporary balance until the FOMC meeting results are announced. A quarter-point cut is already clearly priced in, but the driver will be the tone of comments regarding the Fed’s future actions. A willingness to further cut rates in the foreseeable future could inspire BTC to march toward new all-time highs.

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According to SoSoValue, net weekly inflows into spot BTC ETFs jumped nearly 10-fold to $2.34 billion, the highest since mid-July. Total inflows since the approval of Bitcoin ETFs in January 2024 have increased to $56.83 billion. On Wednesday, the indicator recouped all of the previous week’s losses.

Inflows into spot Ethereum ETFs in the US resumed last week, amounting to $637.7 million, offsetting 80% of the previous week’s outflows. The cumulative net inflow since the ETF’s launch in July 2024 has grown to $13.36 billion.

Investors should give up hope of quick profits from their investments in the first cryptocurrency, said BitMEX founder Arthur Hayes. In his opinion, Bitcoin was created to protect against inflation, not to make a profit here and now.

The US SEC has postponed its decision on applications from BlackRock, Fidelity, and Franklin Templeton, which wanted to add a staking feature to their spot Ethereum ETFs until the end of October or November.

According to Galaxy Digital CEO Mike Novogratz, the crypto industry has entered the “Solana season.” A key factor was Forward Industries’ launch of the largest SOL treasury, worth $1.6 billion. Against this background, Galaxy Digital purchased 2.31 million SOL worth $536 million for its reserves.

The Winklevoss brothers’ Gemini crypto exchange raised $425 million during its IPO. The event caused a stir among investors, creating more than 20 times oversubscription for the shares.

Tether introduced the USAT stablecoin for the US market. It is backed by dollars and fully compliant with US regulations. The stablecoin will use Tether’s Hadron RWA platform technology.

by FxPro’s Senior Market Analyst Alex Kuptsikevich