Major cryptocurrencies exhibited a lackluster trading atmosphere as investors positioned themselves ahead of the anticipated Federal Reserve meeting scheduled for Wednesday. Among the notable movements, Solana’s SOL token displayed exceptional open interest in CME-listed futures, nearing record levels. In contrast, privacy-centric Monero (XMR) managed a 6% increase over the past day, seemingly unfazed by significant blockchain reorganization concerns that sparked discussions about centralization. Other cryptocurrencies that saw gains included Immutable (IMX), which surged nearly 13%, Avalanche (AVAX), which rose by 6%, and HASH, up 4%.
Mixed market signals emerged as traders braced for potential volatility following the Fed’s decisions. Timothy Misir, head of research at BRN, highlighted that while the ETF market value to realized value (MVRV) ratio climbed to 2.29 and substantial institutional bids were observed, underlying metrics suggested a weakening in cumulative volume delta. “That mismatch of momentum without broad participation is a classic setup for either a headline-driven retracement or a sharp follow-through if the Fed meets market expectations,” he noted.
In terms of derivatives positioning, capital outflows from futures continued to impact major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), leading to a decrease in open interest. However, AVAX distinguished itself with a 14% increase in open interest as its market capitalization approached $13 billion, a level not seen since early February. Solana’s open interest reached an impressive high of over 70 million SOL, supported by favorable funding rates indicative of bullish inflows. Although the CME’s open interest for Solana futures receded to 7.63 million SOL—down from a peak of 8.12 million SOL earlier in the month—the three-month annualized premium remained above 15%, presenting an enticing yield for carry traders.
On Deribit, there was a noticeable easing of bias for BTC and ETH put options across various tenors as traders anticipated possible rate cuts from the Fed. In contrast, SOL and XRP options retained a bullish bias. Additionally, activity on the OTC network Paradigm highlighted block flows involving BTC calendar spreads and strategies involving the shorting of both call and put options.
Focusing on individual tokens, IMX emerged as a standout performer, climbing 15% within a 24-hour period and witnessing its trading volume double to $144 million. This surge propelled IMX, the native token of the Web3 gaming platform Immutable, to a five-month high. The positive sentiment surrounding Immutable can largely be traced to the resolution of an SEC investigation earlier in the year and growing optimism in the gaming sector, projected to generate $200 billion in revenue this year with continuous growth expected through 2026, especially with the anticipated release of Rockstar Gaming’s Grand Theft Auto 6.
Immutable’s strategic partnerships, notably with gaming powerhouse Ubisoft for the upcoming release of “Might and Magic Fates,” further position the platform to leverage growth within the gaming market. The evolving landscape of blockchain technology could play a pivotal role in transforming gaming, particularly in terms of in-game ownership and the potential integration of non-fungible tokens (NFTs). Currently trading at $0.736 after breaking through a significant resistance level, IMX is anticipated to test the $0.70 mark as support before aiming for further upward movement, contingent on sustained trading volume levels.
