Federal Reserve Rate Cut Signals Could Trigger 15–20% Drop in Top Altcoins, Analyst Warns

XRP, SOL, and DOGE could drop 15–20% ahead of the Fed rate cut, with $240 million in liquidations and Bitcoin’s dominance rising.

As the U.S. Federal Reserve prepares for its rate cut on September 17, experts warn that XRP, SOL, and DOGE could drop 15–20%. With over $240 million in liquidations, the market braces for volatility.

Bitcoin’s dominance is expected to rise as altcoins face corrections, making for a challenging environment ahead.

Crypto Market Drops Heading into Fed Rate Cut This Week

The crypto market is correcting as the Fed rate cut approaches. Bitcoin, which reached $116,000, is facing resistance at these levels.

Analyst Ted Pillows noted that the September triple witching event could add weakness to both equities and crypto. The event, where stock options, index options, and futures contracts expire, often pressures the market.

Pillows expects Bitcoin to fall 5–8%, while altcoins could see sharper declines of 15–20%. Investors are adopting a cautious approach ahead of the Fed’s decision. With over $240 million in liquidations, market sentiment is turning more negative.

Full-Blown Altcoin Season Isn’t Coming Soon

Despite a rise in the altcoin season index, Bitcoin is expected to dominate in the short term. The altcoin index recently hit 84, but analysts believe this may not last.

Bitcoin dominance is expected to rise toward 60%, pushing altcoins lower. Technical analysis suggests Bitcoin will gain momentum and reduce altcoin strength.

Altcoins may outperform Bitcoin later, but that is not expected in the near future. Bitcoin is holding firm at $116,000, showing more strength than altcoins. This points to Bitcoin leading the market in the short term.

Bitcoin Shows Relative Strength Amid Market Volatility

Bitcoin has shown resilience in the face of the current market correction.

While altcoins like XRP, SOL, and DOGE struggle, Bitcoin is holding steady at around $116,000. This relative strength highlights Bitcoin’s dominance in the market as it continues to maintain its position.

Investors are more likely to stick with Bitcoin during periods of volatility.

Despite broader market challenges, Bitcoin remains a safer asset compared to more volatile altcoins. This stability is encouraging for those looking for less risk in uncertain times.

Bitcoin’s ability to hold firm while altcoins decline signals its continued leadership in the market. As the Fed rate cut approaches, Bitcoin is expected to retain its strength