Bitcoin Rises Ahead of FED Interest Rate Decision

The cryptocurrency market is once again stirring with expectations surrounding the interest rate decision that the US Federal Reserve (Fed) will announce this week, as investors are on high alert. The price of Bitcoin has risen to 115,200 dollars, creating a positive atmosphere, while Ethereum is trading at 4,165 dollars.

The positive mood observed on the first trading day of the week indicates that investors are turning to riskier assets amid strong expectations for an interest rate cut that the Fed is expected to announce on Wednesday. Bitcoin's 30-day implied volatility has dropped to %44, significantly decreasing compared to the sharp decline earlier in October. This situation reveals that the level of concern in the market has diminished.

A neutral to slightly negative outlook still prevails in long-term contracts in the options market. Analysts interpret that, despite an increase in open positions in futures trading, leveraged trading remains limited, indicating that the upward trend is proceeding in a "more cautious" manner. This situation shows that investors continue to act more carefully.

The recovery ahead of the Fed's decision is also impacting altcoins. Notably, older cryptocurrencies such as Zcash (ZEC), Bitcoin Cash (BCH), and Dash (DASH) have recorded double-digit percentage increases. The price of Zcash has risen to 365 dollars, Bitcoin Cash to 564 dollars, and Dash to 51 dollars. However, tokens that have recently entered the market, such as Plasma (XPL) and Aster (ASTER), have experienced sharp declines. After rising to 1.67 dollars and reaching a volume of 3.3 billion dollars shortly after its launch, Plasma has now decreased to 0.36 dollars. Aster, on the other hand, has dropped to 1.07 dollars, losing 43% of its value in the past month.

These declines indicate a rapid cooling of interest in new projects. Over the last six weeks, Bitcoin's market dominance has risen from %57.1 to %59.1. According to experts, this increase demonstrates that investors are gravitating towards more stable assets like Bitcoin during periods of uncertainty and avoiding the risks associated with altcoins.