Altcoins outperformed the broader market during Tuesday's rally. Ethereum jumped 8% to reach $3,359, extending its weekly advance to more than 16%.
Bitcoin News
Bitcoin climbed above $94,400 on Tuesday, its strongest level since mid-November, as traders positioned ahead of the Federal Reserve's Wednesday policy announcement. The asset gained 5% over 24 hours after spending recent days near $90,000.
Altcoins outperformed the broader market during Tuesday's rally. Ethereum jumped 8% to reach $3,359, extending its weekly advance to more than 16%. The gain represented the largest among the top 10 cryptocurrencies over that timeframe.
XRP added 5% to trade at $2.17, while Solana rose 6% to $144 and Dogecoin climbed 6% to $0.15. The Federal Open Market Committee convened Tuesday, with expectations running high for a third consecutive rate reduction.
CME FedWatch data shows interest rate traders pricing in a nearly 90% probability of another 25-basis-point cut. Low-interest-rate environments typically support Bitcoin and other risk assets, though Tuesday's strength may reflect traders buying ahead of the announcement.
CoinGlass data recorded $376 million in liquidated positions over the past day. Short positions accounted for $297 million of that total, reversing a pattern from recent months when falling prices predominantly hit long positions.
Bitcoin represented roughly $153 million of liquidated positions, with Ethereum accounting for $110 million. A four-hour window saw short liquidations exceed $260 million, among the largest forced buying episodes in recent weeks.
The Office of the Comptroller of the Currency released Interpretive Letter No. 1188 on Tuesday, clarifying that national banks can conduct riskless principal transactions in crypto assets. The transactions allow banks to intermediate trades between customers without holding inventory themselves.
Standard Chartered analysts lowered their year-end Bitcoin target to $100,000 while maintaining long-term optimism. The bank characterized current conditions as a cold breeze rather than a crypto winter.
Senator Kirsten Gillibrand told reporters that nothing is preventing the passage of pending market structure legislation. Negotiators are working to complete a draft this week as momentum builds on Capitol Hill.
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