Federal Reserve's FOMC Decision Draws Near - Reason for Bitcoin Optimists to Stay Vigilant
In the ever-evolving world of digital assets, recent developments have sparked renewed interest from institutions. The correlation between Bitcoin (BTC) and the Nasdaq Composite Index has flipped negative, reaching -0.14 at press time, signalling a shift in risk capital rotating into equities.
This decoupling is particularly evident in the performance of the S&P500 index, which has surged by nearly 32% off its April low. Meanwhile, the Nasdaq Composite Index has rallied by 50% to hit a new all-time high.
Traders are front-running a potential bullish setup in U.S stocks, given the Federal Open Market Committee (FOMC) meeting less than 48 hours away and a 96% odds of a 400-425 basis points cut. This monetary easing could further boost the equity market.
Amidst this backdrop, Bitcoin's price has dropped by 38% on the price charts. However, the reduced activity compared to tech bonds and altcoins is primarily due to a cooling of speculative trading as investors await key signals from Federal Reserve Chair Jerome Powell. Trading volumes for most tokens except Bitcoin have dropped by 20% or more, indicating cautious market sentiment and hedging against possible restrictive monetary policy commentary.
On the other hand, altcoins have been making strides. The total market cap of Altcoins (excluding Bitcoin) reached $1.74 trillion on September 8, accounting for 45.8% of the market share. Two altcoins, Ethereum and Solana, have seen significant gains recently, driven by announcements from Digital Asset Treasury Companies planning to hold major cryptocurrencies on their balance sheets.
The SOL/BTC ratio increased by 10.5% in a month, with Solana spiking nearly 3 times versus Bitcoin's 6% return. The potential for Solana's price to reach $300 is a topic of discussion among analysts.
Sixteen treasuries now hold 10.29 million SOL, keeping capital locked in alt momentum. This shift in the digital asset market is reviving institutional interest, with David Hernandez from 21Shares noting momentum in the broader digital asset market, with Ethereum and Solana being major contributors.
The announcements from Digital Asset Treasury Companies are a development that may be attracting institutional investors. This renewed interest could further fuel the growth of the digital asset market in the coming months.
Read also:
- Musk threatens Apple with litigation amidst increasing conflict surrounding Altman's OpenAI endeavor
- Innovative Garments and Accessories Producing Energy: Exploring Unconventional Sources for Renewable Power
- BMW's Debrecen Plant Unveiled: Birthplace of the iX3 and New Class Models
- Electrified Opel Corsa GSE Concept (2025): Echoing the Performance of Lamborghini
