XRP, BNB, and Hyperliquid Lead Crypto Gains Ahead of Crucial Fed Decision

With the Fed’s crucial interest rate decision in less than 12 hours, a select few altcoins have taken the lead, outperforming others. 

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BNB takes the lead with a 2.5% return in 24 hours, closely followed by Sui, Hyperliquid, and XRP with 2.2%, 1% and 0.7% growth, respectively.

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Altcoins are riding on the coattails of coin-specific developments and not due to the U.S. Federal Reserve’s rate cut decision scheduled on Wednesday at 2 pm ET, Lai Yuen, investment analyst at Fischer8 Capital, told Decrypt. 

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Hyperliquid and BNB are benefitting from “chatter around digital asset treasury buying flows, underpinned by solid businesses and clear value-accrual models,” Yuen explained. 

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The excitement surrounding XRP is fuelled by the newly approved spot ETF, which could launch as early as this week, he added. 

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Still, Layer 1s have continued to outperform other sectors like meme coins, Layer 2s, or gaming over the past seven and 30 days, data from Velo shows. 

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Altcoin Leverage Surges as Traders Brace for Fed Decision

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With the S&P 500 index and gold up 0.25% and 0.60% on the day and just below their respective record highs, Yuen noted that equities and gold were seeing a strong bid heading into the FOMC, while “crypto continues to lag with majors capped by lower highs.”

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Despite the short-term bearish market structure, institutions continue to accumulate. 

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Last week’s $2.34 billion inflow into U.S. Bitcoin exchange-traded funds pushed global exchange-traded product holdings to new highs, according to a previous Decrypt report.

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Here’s What History Says Will Happen a Month and Year After the Fed’s Rate Cut

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Meanwhile, crypto prime broker FalconX has withdrawn 413,075 SOL from Binance, Coinbase, ByBit, and OKX on Tuesday, data intelligence platform Arkham shows.

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That could be a sign of accumulation from larger players as they seek to reduce their stockpiles on exchanges to sell quickly.

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Speculation surrounding altcoins has climbed to new highs as noted by the recent surge in altcoin open interest that briefly overtook Bitcoin’s on September 13, per Coinanalyze data.

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The uptick in leverage highlights the investors’ “eagerness for alt season,” ahead of the fourth quarter’s historically bullish performance, Stephen Gregory, founder of crypto trading platform Vtrader, previously told Decrypt.