With the Fed’s crucial interest rate decision in less than 12 hours, a select few altcoins have taken the lead, outperforming others. ”
BNB takes the lead with a 2.5% return in 24 hours, closely followed by Sui, Hyperliquid, and XRP with 2.2%, 1% and 0.7% growth, respectively. ”
Altcoins are riding on the coattails of coin-specific developments and not due to the U.S. Federal Reserve’s rate cut decision scheduled on Wednesday at 2 pm ET, Lai Yuen, investment analyst at Fischer8 Capital, told Decrypt. ”
Hyperliquid and BNB are benefitting from “chatter around digital asset treasury buying flows, underpinned by solid businesses and clear value-accrual models,” Yuen explained. ”
The excitement surrounding XRP is fuelled by the newly approved spot ETF, which could launch as early as this week, he added. ”
Still, Layer 1s have continued to outperform other sectors like meme coins, Layer 2s, or gaming over the past seven and 30 days, data from Velo shows. ”
Altcoin Leverage Surges as Traders Brace for Fed Decision ”
With the S&P 500 index and gold up 0.25% and 0.60% on the day and just below their respective record highs, Yuen noted that equities and gold were seeing a strong bid heading into the FOMC, while “crypto continues to lag with majors capped by lower highs.” ”
Despite the short-term bearish market structure, institutions continue to accumulate. ”
Last week’s $2.34 billion inflow into U.S. Bitcoin exchange-traded funds pushed global exchange-traded product holdings to new highs, according to a previous Decrypt report. ”
Here’s What History Says Will Happen a Month and Year After the Fed’s Rate Cut ”
Meanwhile, crypto prime broker FalconX has withdrawn 413,075 SOL from Binance, Coinbase, ByBit, and OKX on Tuesday, data intelligence platform Arkham shows. ”
That could be a sign of accumulation from larger players as they seek to reduce their stockpiles on exchanges to sell quickly. ”
Speculation surrounding altcoins has climbed to new highs as noted by the recent surge in altcoin open interest that briefly overtook Bitcoin’s on September 13, per Coinanalyze data. ”
