Simply put
- Solana, Dogecoin, and Cardano showed stronger performance than the overall crypto market on Wednesday.
- The crypto space appeared resilient, even as Congress failed to pass a resolution to stave off a government shutdown.
- Bitcoin climbed above $117,000 for the first time in about two weeks, amid expectations of a potential 25 basis point cut in the Fed’s interest rates at the upcoming FOMC meeting.
On Wednesday morning, Solana, Dogecoin, and Cardano reported impressive gains compared to the rest of the recovering crypto market.
The broader market capitalization saw a 3.3% rise since Tuesday, according to Coingecko. Solana surged by 6.3% to $220, while Dogecoin increased by 7.7% to $0.245. At the time of writing, Cardano was trading at $0.84.
Late Tuesday, Congress was unable to secure enough votes for the ongoing resolution.
Before the shutdown, analysts noted that disruptions and delays in economic reporting might lead to increased volatility in the crypto markets. However, some viewed this dip as a fleeting moment—possibly a buying opportunity.
“A prolonged shutdown could hinder data releases, dampen consumption and investment, spark concerns about slower growth, and pave the way for a cautious policy stance,” analysts from Bitunix mentioned in a memo shared. “Safe-haven demand might provide short-term support, but the medium-term outlook still hinges on future Fed actions.”
The Federal Open Market Committee will meet at the end of October to discuss adjustments to the federal interest rate, which typically influences riskier assets, including stocks and cryptocurrencies.
Currently, a significant portion of users in a forecast market believe there’s a 74% chance the FOMC will implement a 25 basis point cut in the upcoming meeting.
Meanwhile, Bitcoin has recently topped $117,000 for the first time in nearly two weeks, gaining almost 4% since yesterday. Ethereum, too, has surged by 5% over the past 24 hours, surpassing the $4,300 mark.
Interestingly, the crypto market doesn’t seem to be overly affected by shutdown realities. Despite being near monthly highs, the S&P 500 and the CBOE Volatility Index saw recent increases.
“In fiscal matters, US government shutdowns aren’t merely non-events; they can lead to data delays and surface-level disruptions,” remarked an analyst at QCP Capital in a transaction note. “Essential services will continue, and previous shutdown episodes haven’t typically disrupted risk assets.”
For alternative cryptocurrencies that are outperforming the market, there is optimism surrounding ETF approvals related to assets like Solana.
This could be encouraging news for existing Solana exchange-traded products, with Digital Asset Manager Coinshares noting a $291 million influx last week.
One recently listed fund, the Rex-Sosprey Sol + Staking ETF, has already gained $21.5 million this week, after launching in July with total assets now reaching $349 million.
