Altcoin season has begun: Crypto market picks up ahead of Fed meeting

INFBusiness
11.09.2025
News

The crypto market is shifting into high gear just days before a possible Fed interest rate cut. Total market capitalization is up 2.1 percent compared to the previous day, just above the $4 trillion mark.
The Bitcoin price rose by around two percent to $114,000, just under $10,000 below its record high set in August. The leading cryptocurrency also gained around three percent week-on-week.
The altcoins are also showing signs of movement. Ethereum is gaining two percent on the day, and XRP is once again just above the $3 mark. BNB, Solana, and Cardano are still snatching price gains of almost two percent, while Dogecoin is the top performer among the ten largest cryptocurrencies with a four percent increase.
The highest price gains among the 100 largest cryptocurrencies within the last 24 hours are Mantle (18 percent), Pump.fun (13 percent) and Avalanche (10 percent).
Although the Crypto Fear and Greed Index continues to show a “neutral” sentiment among investors, it has increased by five points compared to the previous day, currently standing at 54.
The fact that risk appetite is slowly increasing ahead of the important Fed meeting next week is also reflected in the Altcoin Season Index, which, at 78 points, has not only reached a new annual high but also marks the beginning of an altcoin season, according to data from Blockchaincenter. In comparison, Bitcoin dominance has declined by two percent month-on-month.
This likely also factors in the expectation of interest rate cuts by the US Federal Reserve on September 16 and 17. Weak labor market data has recently significantly increased the likelihood of this. A cut of 50 basis points is expected. Historically, every one percent cut has correlated with a Bitcoin price increase of 15 to 20 percent within six months.
You can find out how previous interest rate increases and cuts have affected the Bitcoin price, and why the overall effect of interest rates is overestimated, here: Interest Rate Cuts: How Much Does Bitcoin Really Benefit?

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