The crypto market is in the green today, with Bitcoin, Ethereum, XRP, and Solana recording significant gains. This comes ahead of tomorrow’s FOMC meeting, where the Fed is likely to make the third rate cut of the year.
Bitcoin, Ethereum, XRP, and Solana Gain Ahead of FOMC Meeting
TradingView data shows that the flagship crypto is up almost 4% today, breaking above $94,000 in the process. BTC has climbed from an intraday low of $89,500 and is now aiming for a new multi-week high of $95,000.
Altcoins, including Ethereum, XRP, and Solana, have also recorded significant gains on the day, up 8%, 4%, and 6%, respectively. Thanks to these gains, the total crypto market cap has reached $3.18 trillion, up over 4% today.
The Bitcoin and broader crypto market rally comes ahead of tomorrow’s FOMC meeting. As CoinGape reported, the committee is likely to make another Fed rate cut, the third this year. CME FedWatch data shows that there is currently a 90% chance that the Fed will lower rates by 25 basis points (bps).
The market rally also comes amid the CFTC’s launch of a pilot program that enables the use of crypto assets as collateral in the derivatives market. These assets include BTC, ETH, and USDC, a move that is likely to boost their adoption.
Meanwhile, CoinGlass data shows that $289 million has been liquidated from the crypto market in the last four hours amid the Bitcoin and broader crypto market rally. $265 million of these liquidations were short positions, while $24 million were long positions.
Setup Looks Bullish For A “Santa Rally”
GSR’s Global Head of OTC, Spencer Hallarn, stated that the current market setup looks pretty bullish for a Santa rally. He added that the end of the year is looking, hinting at a further rally to the upside.
Hallarn opined that the recent Bitcoin crash to as low as $83,000 likely shook out many bulls and built a solid base of skepticism. He also noted that the Perp funding rates are very low or negative, suggesting that there isn’t much leverage in the market.
Meanwhile, as CoinGape reported, Standard Chartered’s Geoff Kendrick recently predicted that BTC could at least reach $100,000 by year-end, after earlier predicting it could reach $200,000 by year-end. The analyst also described the recent crash as a “cold breeze” rather than a crypto winter.
Crypto traders are currently betting on Bitcoin rallying to $100,000 before the end of this year. Polymarket data shows that there is currently a 49% chance that BTC will hit this psychological level this year. Meanwhile, there is a 24% chance that it will climb to as high as $105,000.
