The cryptocurrency market has demonstrated significant strength, with Bitcoin (BTC) decisively breaking above the $108,000 level, fueled by a potent combination of positive institutional news and a broader return to risk-on sentiment in global markets. Bitcoin surged to a high of $108,600 before seeing slight consolidation. According to the latest 24-hour data, the BTC/USDT pair is trading around $107,749, holding firm above critical support levels after reaching a session high of $108,746. This upward momentum reflects a market shifting its focus from recent geopolitical tensions to fundamental crypto-centric developments, particularly as traders anticipate the Federal Reserve's upcoming policy decisions.

The rally was not confined to Bitcoin. A broad market index tracking leading digital assets showed a gain of over 4%, indicating widespread bullish sentiment. XRP was a standout performer, rallying on news that asset manager Purpose intends to launch a spot XRP exchange-traded fund (ETF) in Canada. This development follows a similar path that ignited institutional interest in Bitcoin and Ethereum, suggesting a growing appetite for regulated altcoin investment vehicles. At the time of analysis, XRP/USDT was trading at approximately $2.176, consolidating its recent gains. Chainlink (LINK) also posted impressive returns, with traders pushing its price up. However, current data shows LINK/USDT trading at $13.23, indicating some profit-taking after the initial surge. The positive sentiment extended to crypto-related equities, with Coinbase (COIN) and Hut 8 (HUT) closing up 7.7% and 5.6%, respectively, highlighting the strong correlation between digital asset prices and publicly traded crypto companies.

Is a True Altcoin Season on the Horizon?

Despite the strong performance across several altcoins, some analysts urge caution before declaring the start of a full-fledged altcoin season. According to Nansen research analyst Nicolai Søndergaard, Bitcoin remains the primary driver of the market. "BTC has mostly served as a trigger for altcoins," Søndergaard noted, explaining that major BTC price movements, especially new all-time highs, tend to create a ripple effect where profits trickle down into other assets. While certain sectors like DeFi may experience brief periods of outperformance, these have not yet translated into sustained, independent altcoin rallies. The data supports this view, with most altcoins still showing long-term underperformance against Bitcoin. For instance, the LTC/BTC pair is trading at 0.000901, while the ADABTC pair sits at 0.00000523, illustrating the persistent dominance of Bitcoin.

On-Chain Signals and Macroeconomic Headwinds

From a technical and on-chain perspective, the market appears to be building a solid foundation. Analysts from Bitfinex observed that the recent dip, which saw the Fear and Greed Index fall into “Fear” territory, was accompanied by aggressive selling according to Bitcoin’s Net Taker Volume. This pattern, they suggest, is characteristic of capitulation events that often precede a market bottom. "This behavior, combined with a spike in liquidations, resembles past capitulation-style setups that often mark local bottoms,” the analysts stated. They identified the $102,000-$103,000 range as a critical support zone for BTC. If Bitcoin can maintain this level, it would signal that selling pressure is being absorbed, potentially setting the stage for a sustained recovery. All eyes are now turning to the Federal Reserve. While the market, according to the CME FedWatch tool, overwhelmingly expects interest rates to remain unchanged, Federal Reserve Chair Jerome Powell's subsequent press conference will be scrutinized for clues on future policy. As digital asset analytics firm Swissblock noted, "Powell’s tone, not the rate decision, will drive volatility." This suggests traders should brace for potential whiplash price action across all risk assets, including cryptocurrencies, as the market digests the Fed's outlook on inflation and economic growth.