Crypto Market Faces Crucial Week as Fed and Congress Decide Future Course
The crypto market is experiencing an unusual divergence, with altcoins rising but not outperforming Bitcoin. According to Glassnode data, the altcoin market capitalization has climbed 21% over the past month, while its share of the combined Bitcoin-and-altcoin market fell by 0.9 percentage points over 90 days.
Despite this, higher-beta tokens have held their ground without gaining, setting up an interesting test ahead of Q4. The Federal Reserve and US Senate are scheduled to make key decisions this week that could impact the market's trajectory.
The Fed is expected to raise interest rates by 25 basis points to 3.75%-4%, with futures markets pricing in roughly 90% odds of a hike alongside several more increases through mid-2027. The 10-year Treasury yield briefly touched 5% on Sept. 14, adding a higher global hurdle rate to the market.
The Senate faces a cloture vote on the motion to proceed to the CLARITY Act on Sept. 15, requiring 60 votes to advance consideration. If passed, this could impact the rally's potential stretch.