The crypto market had a strong performance last week, with the combined market capitalization of all coins jumping back to over $4 trillion.
Summary
- The crypto market will react to the upcoming Federal Reserve rate decision.
- The Altcoin Season Index has been in a strong uptrend lately.
- Some notable coins will have major token unlocks this week.
Renewed hopes that the Federal Reserve would make interest rate cuts a reality field the rally, along with the Gemini IPO.
Here are the top catalysts that will drive the crypto market this week.
Crypto market to react to Federal Reserve decision
Economists polled by Reuters expect the U.S. central bank to cut the interest rate after the upcoming meeting begins this Tuesday, Sept. 16, and wraps on Wednesday, Sept. 17
Odds of a cut have intensified after the U.S. released weak jobs numbers earlier this month. A report showed that the economy added just 22,000 jobs in August, while the unemployment rate rose to 4.3%.
Historically, stocks and the crypto markets do well when the Federal Reserve is cutting interest rates as it normally incentivizes a risk-on sentiment among investors. For example, Bitcoin (BTC) and most altcoins jumped to a record high during the pandemic as it slashed rates to zero and implemented quantitative easing.
The risk, however, is that the upcoming interest rate cuts have been priced in, which may lead to a pullback.
Altcoin Season Index rising
The other primary catalyst for the crypto market will be the rising Altcoin Season Index, which has moved to over 80. Top altcoins like MYX Finance, MemeCore, OKB, Pudgy Penguins, Cronos, Story, and Mantle drove this increase.
The rising Altcoin Season Index may drive more investors to these coins this week, leading to a strong performance.
However, in some instances in the past, the entry into the altcoin seas
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Author: Crispus Nyaga
