Bitcoin Holds Breath Before Fed Meeting—While HYPE, AAVE, RNDR, and FET Defy the Wait With Bullish Surges

Bitcoin’s price action stalls as traders brace for the Fed’s latest move—because nothing says ’decentralized’ like hanging on every word from central bankers.

Meanwhile, four altcoins are stealing the spotlight: HYPE’s social volume spikes, AAVE’s lending pools hit record liquidity, RNDR’s GPU-powered rally continues, and FET’s AI narrative goes parabolic. Are these signals flukes or the start of a real rotation?

Pro tip: Watch how fast the ’risk-on’ narrative returns if Powell hints at rate cuts. The crypto market’s memory is conveniently short when cheap money’s back on the menu.

Bitcoin investors rotate into future-forward narratives

With the FOMC looming, savvy investors aren’t just sitting tight with their BTC bags. Instead, they’re diversifying. And, it’s not just macro jitters causing this shuffle. 

Internally, Bitcoin Dominance (BTC.D) just tapped a four-year high near 65%. However, it is now facing potential resistance – Indicative of a local top.

Source: TradingView (BTC.D)

The tactical shift is evident – Capital is rotating where Bitcoin’s mood swings won’t wreck the portfolio. Meanwhile, the ETH/BTC pair is continuing to exhibit low volatility compression on the weekly timeframe.

In other words, it reflected a clear lack of conviction in high-cap altcoin rotations, even with favorable historical setups in play.

As a result, “next-generation” Web3 narratives have been stealing the spotlight and liquidity flow.

From blue chips to brain chips

At press time, the AI sector accounted for 1.05% of the total crypto market capitalization, with the same pegged at $2.94 trillion. 

Despite its relatively small market share though, the sector has seen strong momentum lately. This can be evidenced by the impressive performance of key AI-driven tokens.

Over the past month, RNDR has surged by 30% and FET has spiked 50%. These gains hinted at a significant uptick in bullish market conviction within the AI niche.

Source: CoinMarketCap

When compared to broader crypto market’s performance, Bitcoin registered 13% gains. And yet, only Solana [SOL] stands out as the other major asset in the top-tier to post double-digit returns. 

Meanwhile, HYPE has led the pack with a remarkable 74% gain, suggesting the potential onset of a paradigm shift.

Simply put, investors are leaning into the future with a growing risk-on appetite for emerging Web3 technologies.