Crypto Market Awaits Fed Decision as Volatility Signals Flash

Traders are bracing for a spike in volatility ahead of Wednesday’s Federal Reserve interest-rate decision, with major tokens trading mostly subdued.

Solana’s SOL was an exception, attracting attention with near-record open interest in CME-listed futures contracts.

Meanwhile, privacy coin Monero (XMR) gained 6% over the past 24 hours, shrugging off concerns after a major blockchain reorganization raised questions about centralization. Among other notable movers, Immutable (IMX) rallied nearly 13%, Avalanche (AVAX) climbed 6%, and HASH advanced 4%.

Market signals, however, suggest caution. According to Timothy Misir, head of research at BRN, the ETF MVRV ratio has climbed to 2.29 while institutional liquidity remains firm. But beneath the surface, spot cumulative volume delta has weakened and momentum gauges are overbought.

“That kind of divergence—strong momentum without broad participation—is a classic setup,” Misir said. “It could trigger either a headline-driven pullback or a sharp continuation if the Fed outcome matches investor expectations.”