Bitcoin Peaks at $117,300 Amid Fed Rate Cut Speculation

Bitcoin Price Movement

- Bitcoin reached $117,300, its highest since August 22, before settling at $116,400.
- The Federal Reserve's interest rate decision is anticipated, with a potential 25 basis point cut.

Market Dynamics

- A "CME gap" was filled as Bitcoin reached the same level where futures closed and reopened over the weekend.
- Bitcoin dominance dropped to 57%, indicating a shift towards altcoins during low volatility periods.

Derivatives Market Insights

BTC futures open interest increased to $32 billion.
The annualized basis on major exchanges like Binance and Deribit is compressing to 6-7%.
Options data shows mixed sentiment: long-term volatility expected to rise, yet short-term bearish outlook noted.
Funding rates suggest growing bullish sentiment if trends continue.

Altcoin Performance

Altcoins gain as Bitcoin remains in a tight range, reaching an eight-month low in dominance.
RSI for altcoins suggests they are nearing "oversold" levels, primed for potential upside.
Past dominance lows indicate further room for altcoin growth if conditions persist.
A Bitcoin breakout could lead to capital rotation back to BTC, particularly if it approaches $124,000.