Crypto Market Momentum Loses Steam Ahead of Anticipated Fed Rate Decision

Omkar Godbole reports that the upward momentum in Bitcoin and Ether has encountered a hurdle. Following the release of a higher-than-expected U.S. Producer Price Index on Thursday, investors have become more cautious, leading to a stronger dollar. Additionally, the Truflation index has surpassed 3% for the first time in over two years, causing concern. Despite this, Fed fund futures remain optimistic about a 25 basis point rate cut next week, and traders on decentralized exchanges continue to show bullish sentiment. This is reflected in the substantial open interest in BTC call options on Derive, which stands at $64.8 million, significantly higher than the open interest in put options. Similarly, Ether traders are favoring calls, according to data from Amberdata. Funding rates for BTC, ETH, and SOL on HyperLiquid are also positive but measured. In the broader market, AVAX has struggled near $55, while LQTY has taken a break near $2.45 after more than doubling in value over the past four weeks. A survey by Coin68 found that over half of respondents reported profits from their investments last year and anticipate an altcoin season in 2025. Meanwhile, the token FART has gained significant value, reaching a market cap of nearly $700 million, with its unique 'Gas Fee' system and community engagement.