Top Influencers Shaping the Crypto Market This Week

In the past week, the cryptocurrency market exhibited strong momentum, with the overall market capitalization of digital assets surpassing $4 trillion.

Positive sentiment regarding potential interest rate reductions by the Federal Reserve, combined with news of the Gemini IPO, has fueled this upswing.

Here are the major factors anticipated to affect the cryptocurrency market this week.

Crypto market ready for Federal Reserve’s decision

Economists polled by Reuters expect that the U.S. central bank will implement a rate cut after its meeting set for Tuesday, September 16, concluding on Wednesday, September 17.

The likelihood of a rate cut has risen following disappointing job reports released earlier this month. A report showed that only 22,000 jobs were added in August, while the unemployment rate increased to 4.3%.

Historically, both stock and crypto markets tend to thrive during periods of Federal Reserve rate cuts, as these decisions typically embolden investors to engage in riskier assets. For example, during the pandemic, Bitcoin (BTC) and various altcoins surged to record highs when rates were slashed to zero along with quantitative easing.

However, there is a potential risk that these anticipated cuts have already been priced into the market, possibly resulting in a pullback.

Surging Altcoin Season Index

Another crucial development influencing the crypto landscape will be the escalating Altcoin Season Index, which has now exceeded 80. Prominent altcoins such as MYX Finance, MemeCore, OKB, Pudgy Penguins, Cronos, Story, and Mantle have all contributed to this increase.

The upward trend of the Altcoin Season Index may attract additional investors this week, leading to strong performances. Nonetheless, past occurrences of entering the altcoin season have occasionally resulted in pullbacks as investors secure profits. For instance, many altcoins experienced declines in late July after the index climbed to 55.

Introduction of Dogecoin and XRP ETFs

Another noteworthy event for the crypto market will be the introduction of the inaugural Dogecoin (DOGE) and Ripple (XRP) ETFs, expected on Thursday.

These ETFs will be offered by Rex-Osprey, which received approval for these products a few months ago. Unlike traditional ETFs, these funds will adhere to the Investment Company Act and may incur higher costs.

As the market awaits the approval of significant crypto ETFs, expected in October, these new offerings could generate substantial interest.

Upcoming key token unlocks

The cryptocurrency market is also preparing for several vital token unlocks. Arbitrum, recognized as the second-largest layer-2 network, will unlock tokens worth over $49.9 million on Monday.

ApeCoin is poised to unlock tokens valued at more than $9.69 million, while Zetachain will unveil coins worth $8.6 million. Other significant unlocks this week will involve Melania, LayerZero, Velo Finance, and Kaito.