Ethereum and Bitcoin Lead as Fed Rate Hike Looms Over Cryptocurrency Market
The cryptocurrency market is set for a potential shake-up in October 2026, with the Federal Reserve's upcoming interest rate hike and a rising 10-year Treasury yield posing a threat to all coins. Among the major cryptocurrencies, Ethereum stands out for its impressive 57% growth over the past 90 days, outperforming other major coins like Solana, XRP, and Bitcoin. However, Bitcoin has shown resilience, closing its first winning quarter in a year and retaining more value than the others, making it an attractive option for those prioritizing value protection over aggressive gains.
Smaller coins like NEAR Protocol, Arbitrum, and Zcash have also seen significant gains, with NEAR increasing by 230% year-to-date and Arbitrum surging 165% over the last 90 days. However, these coins are riskier and may decline more sharply if a rate hike occurs.
The upcoming Fed meeting and interest rate hike will be a key factor in determining the market's performance in October. If rates rise, borrowing costs will increase, and speculative cryptocurrencies may take the hardest hit, while Bitcoin and Ethereum may hold up better against market pressures.