“Markets Watch: Altcoins Rally Ahead of Upcoming Fed Rate Decision”

Bitcoin Hits Multi-Week High as Altcoins Gain Ahead of Fed Decision – 17/9/2025

Bitcoin (BTC) briefly surged to $117,300 on Wednesday, marking its highest level since Aug. 22, before retreating to around $116,400. The market now turns its attention to the Federal Reserve’s rate decision at 18:00 UTC, where a 25-basis-point cut is widely expected.

The early rally coincided with the closing of a “CME gap,” the difference between Friday’s futures close and Sunday’s open. With the gap filled, BTC may consolidate above key support at $110,000, creating opportunities for capital to flow into altcoins.

Bitcoin dominance has slipped to 57%, the lowest since January, signaling growing investor interest in altcoins amid muted BTC volatility, according to CoinMarketCap.

Derivatives and Market Insights
BTC futures open interest rose to $32 billion last week, while the three-month annualized basis compressed to 6–7% across Binance, OKX, and Deribit, suggesting active trading but reduced bullish conviction. Options data is mixed: long-term implied volatility remains elevated, short-term skew hints at mild bearish sentiment, but 24-hour call volumes point to bullish positioning. Funding rates are also rising, with BTC annualized funding at 17%, indicating stronger directional bets.

Altcoins on the Move
Altcoins are capitalizing on BTC’s range-bound trading. The average token RSI sits at 45.47, suggesting many altcoins are approaching oversold conditions and ready for upward moves. Historically, BTC dominance has dropped to 33% in 2017 and 40% in 2021, leaving further room for altcoin gains.

Traders will closely monitor BTC as it approaches $124,000. A breakout on high volume could rotate capital back into bitcoin, with some analysts projecting year-end prices near $175,000.