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Crypto Market Outlook: BTC, ETH, and SOL Shine Amid Inflation Easing and Rate Cut Bets
Crypto Market Outlook – The crypto market ended last week with strong momentum, fueled by renewed optimism over potential U.S. interest rate cuts and encouraging inflation data. Major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), all posted significant gains, setting the stage for an eventful week ahead.
Bitcoin Breaks $115K After Inflation Data
As of Sunday at 4:00 PM UTC, Bitcoin’s price climbed 4.78%, reclaiming the $115,000 level for the first time in two weeks. The rally came after the release of the August U.S. Producer Price Index (PPI), which showed a 0.1% decline month-over-month, defying expectations of a 0.3% increase. This marked the first drop in producer prices in four months, signaling that inflationary pressures may be easing.
The Consumer Price Index (CPI) report later in the week met market expectations, reassuring traders that inflation was not accelerating. This reinforced hopes that the Federal Reserve could move forward with rate cuts, with markets now pricing in a 0.75 percentage point cut by late 2025 and 1.5 percentage points by September 2026.
Ethereum and Solana Outperform
While Bitcoin’s rally drew headlines, Ethereum gained 7.72% over the week, boosted by renewed inflows into spot ETFs. On Friday alone, more than $400 million entered the ETF market, reversing a two-week slump.
Meanwhile, Solana surged 22.65%, breaking past the $210 level after months of resistance. Its total value locked (TVL) soared beyond $13 billion, reflecting rising DeFi activity. Futures open interest also climbed to $8.1 billion, underscoring strong market confidence.
All Eyes on Powell This Week
Looking ahead, markets are focused on the Federal Open Market Committee (FOMC) meeting on Wednesday. A 0.25 percentage point cut is widely expected, but traders are watching closely for Fed Chair Jerome Powell’s comments on future rate cuts.
With Bitcoin consolidating near $115,000 and altcoins adjusting after big gains, Powell’s words could set the tone for the next major market move.
