Bitcoin's Rise Continues Ahead of the Fed's Interest Rate Decision

The cryptocurrency market has risen again due to expectations regarding the interest rate decision that the US Federal Reserve (Fed) will announce this week. The price of Bitcoin has increased to $115,200, while Ethereum is trading around $4,165. The positive atmosphere in the cryptocurrency market on the first trading day of the week has led investors to turn to riskier assets, anticipating a possible interest rate cut by the Fed on Wednesday.

According to market data, Bitcoin's 30-day implied volatility has decreased to %44, which is significantly lower than the levels during the severe decline at the beginning of October. This situation indicates that the level of anxiety in the markets has decreased and that investors are adopting a more cautious approach. On the other hand, in the options market, a neutral to slightly negative outlook still prevails in long-term contracts. Analysts interpret the limited nature of leveraged trades, despite the increase in open positions in futures, as a sign that the rise is progressing "more cautiously."

This recovery ahead of the Fed has also affected the altcoin market. In particular, older cryptocurrencies such as Zcash (ZEC), Bitcoin Cash (BCH), and Dash (DASH) have surged by double-digit percentages. The price of Zcash reached $365, Bitcoin Cash hit $564, and Dash reached $51. However, newer tokens like Plasma (XPL) and Aster (ASTER) have experienced sharp declines. Plasma rose to $1.67 and achieved a trading volume of $3.3 billion in the days following its launch, but has now fallen to $0.36. Aster has also lost %43 of its value in the past month, decreasing to $1.07. This situation indicates a cooling interest in new projects.

Over the last six weeks, Bitcoin's market dominance has increased from %57.1 to %59.1. According to experts, this increase shows that investors are turning to more stable assets like Bitcoin during periods of uncertainty, avoiding the risks associated with altcoins. The interest rate decision to be announced by the Fed and subsequent developments will be closely monitored by investors in the cryptocurrency markets.