The cryptocurrency market has ignited with renewed vigor, shaking off recent geopolitical tensions as institutional interest once again takes center stage. Bitcoin (BTC) is leading the charge, surging past key resistance levels to trade near $107,602 on USDT pairs. The digital asset reached a 24-hour high of $109,953, placing it tantalizingly close to its all-time record and signaling a significant return of bullish momentum. This rally is not isolated; the broader market is experiencing a lift, with risk appetite returning across asset classes. Traditional markets like the S&P 500 and Nasdaq posted gains, while crypto-related equities such as Coinbase (COIN) and Hut 8 (HUT) also saw substantial increases, underscoring a market-wide risk-on sentiment shift ahead of the pivotal Federal Open Market Committee (FOMC) meeting.

Institutional Catalysts Propel BTC and XRP Higher

Two major institutional developments have provided significant fuel for the current rally. Financial giant JPMorgan filed a trademark application for a suite of digital asset services, including trading, exchange, and payment solutions. This move by a Wall Street titan signals deepening institutional commitment to the crypto space, boosting investor confidence. Simultaneously, the altcoin market received a major fillip from news that asset manager Purpose is preparing to launch a spot XRP exchange-traded fund (ETF) in Canada. This development sent XRP soaring, with the token rallying to a 24-hour high of $2.2792 on USDT pairs. While it has since seen a slight pullback to around $2.2111, the move highlights growing demand for regulated altcoin investment products. Chainlink (LINK) also benefited from the positive sentiment, climbing to a high of $13.79 before consolidating around $13.02.

Bitcoin's Gravity: Is an Altcoin Season Imminent?

Despite the strong performance of select altcoins like XRP and LINK, the question of a full-blown altcoin season remains contentious. According to an analysis by Nansen research analyst Nicolai Søndergaard, Bitcoin continues to be the primary engine of the market. He noted that while profits from BTC's ascent may trickle down into other cryptocurrencies, these have been short-lived bursts rather than sustained runs. A look at key trading pairs supports this view. The ETH/BTC pair, for instance, has declined by approximately 1.85% over the past 24 hours to trade at 0.02326, indicating Ethereum is underperforming Bitcoin. Similarly, the ADA/BTC pair is down 2.57% to 0.00000530. However, some assets are showing relative strength; the LINK/BTC pair posted a gain of 1.01%, demonstrating that while Bitcoin dictates the macro trend, specific catalysts can drive outperformance in certain altcoins. For now, traders appear to be focusing on BTC's strength as the bellwether for the entire market.

Technical Outlook: BTC Holds Key Support Amid Capitulation Signals

From a technical standpoint, Bitcoin's recent price action offers several encouraging signs for bulls. Analysts from Bitfinex recently observed that the market exhibited characteristics of a capitulation event, which often marks a local bottom. Their analysis pointed to the Crypto Fear and Greed Index dipping into “Fear” territory alongside aggressive selling indicated by Bitcoin’s Net Taker Volume. This setup, combined with a spike in liquidations, suggests that weak hands may have been flushed out. The critical support level to watch is the $102,000-$103,000 zone. With BTC currently trading well above this range and having established a 24-hour low at $107,267, the market appears to be absorbing selling pressure effectively. If Bitcoin can maintain its position above this crucial support, it could signal that the market is primed for a sustained recovery and a potential test of new all-time highs.

Looking ahead, the macroeconomic landscape is dominated by the upcoming Federal Reserve decision. While the market overwhelmingly expects rates to remain unchanged, according to the CME FedWatch tool, all eyes will be on Fed Chair Jerome Powell's subsequent press conference. As analysts at Swissblock noted, it will be Powell's tone and forward guidance on inflation and employment that will likely drive volatility across risk assets, including cryptocurrencies. A dovish tone could provide further tailwinds for the ongoing rally, while any hawkish surprises could introduce significant turbulence. Traders should therefore remain vigilant, as the Fed's commentary will be crucial in determining the market's direction for the coming weeks.