Bitcoin holds above $116,400 as Ethereum and altcoins strengthen ahead of Fed decision

On Monday, Bitcoin (BTC) maintained stability above $116,400 (approx. ₹1.02 crore), extending its upward momentum as investors positioned themselves ahead of the much-awaited US Federal Reserve rate decision this week.

Bitcoin Holds Firm Ahead of US Federal Reserve Decision

At the same time, Ethereum (ETH) traded steadily at $4,660 (approx. ₹4.11 lakh), while several altcoins including Solana (SOL), Dogecoin (DOGE), Binance Coin (BNB), and XRP also showed resilience.

Market optimism has been buoyed by growing expectations of a 25 basis points rate cut by the Fed and sustained inflows into crypto exchange-traded funds (ETFs). On Indian exchanges, Bitcoin was priced around ₹1.02 crore, with Ethereum standing at ₹4.11 lakh.

Altcoins Extend Gains Ahead of Macro Events

Solana, Dogecoin, Binance Coin in Focus

Among major altcoins, Solana (SOL) was seen trading at $243 (approx. ₹21,640) after confirming a bullish breakout. Analysts suggest its momentum could target $261 (approx. ₹23,000) if buying demand holds.

Dogecoin (DOGE), priced at $0.28 (approx. ₹25), gained fresh traction following the approval of its ETF. Meanwhile, XRP traded steadily at $3.06 (approx. ₹270). Binance Coin (BNB) changed hands at $934 (approx. ₹82,400), just below its recent all-time high of $944 (approx. ₹83,000).

Despite the optimism, altcoins reflected cautious trading as markets braced for potential volatility triggered by macroeconomic announcements.

Expert Insights on Market Sentiment

Highlighting the cautious optimism, Edul Patel, CEO of Mudrex, noted: “Fed Chair Powell's commentary will be crucial in shaping the outlook. Any hint of future cuts could provide fresh upside for BTC. Currently, the $117,100 (roughly Rs. 1.03 crore) level remains a critical resistance, with strong support around $113,500 (roughly Rs. 1 crore). Meanwhile, Solana remains in the spotlight after confirming a breakout at $242 (roughly Rs. 21,300), with momentum pointing toward $261 (roughly Rs. 23,000) if buying interest sustains.”

Avinash Shekhar, Co-Founder & CEO of Pi42, added: “Traders are cautious as options activity points to volatility, but the resilience of majors highlights that conviction hasn't faded. Dogecoin has received a boost from its ETF approval, setting the stage for potential upward moves, while XRP continues to trade sideways with eyes on liquidity trends. While near-term swings are inevitable, the bigger picture remains intact.”

Market Dynamics and Whale Activity

According to the CoinDCX research team, over $353 million (approx. ₹31,130 crore) worth of tokens will be unlocked this week, a factor likely to increase short-term market volatility. The team also emphasized that the probability of a Fed rate cut has surged to 100 percent, which is flashing bullish signals for Bitcoin.

They added that Michael Saylor has hinted at another Bitcoin purchase, while whales have accumulated more than 16,860 BTC in the last 30 days, supporting the bullish narrative.

Similarly, the CoinSwitch Markets Desk observed: “Institutional flows via ETH ETFs and shrinking exchange reserves are tightening sell-side pressure, boosting sentiment. The Fed is expected to cut rates on September 17, driving speculative demand. But there's a catch—longer-term Treasury yields may stay elevated due to inflation, undermining some of the potential tailwinds for BTC.”

Technical Levels to Watch

Bitcoin’s near-term trajectory depends on whether it can break above $117,500, paving the way to test the $118,000–$120,000 (approx. ₹1.04–1.06 crore) range. On the downside, $113,500 remains the key support level.

If momentum sustains, the market could witness another strong rally, especially if the Fed rate cut aligns with investor expectations.

Conclusion

The crypto market continues to display resilience ahead of the US Federal Reserve’s crucial policy decision. With Bitcoin steady above $116,400, Ethereum holding near $4,660, and altcoins like Solana, Dogecoin, and Binance Coin showing strength, sentiment remains cautiously optimistic.

Whale accumulation, institutional flows into crypto ETFs, and the near-certainty of a Fed rate cut are fueling bullish momentum. However, analysts warn that options activity and macroeconomic uncertainties could trigger short-term volatility.

If Bitcoin successfully clears the $117,500 resistance zone, the market could be poised for a new rally toward $120,000. For now, all eyes are on the Fed’s announcement, which could act as the next major catalyst for the crypto market.