Bitcoin Stabilizes at $122K, Zcash Surges 35% Amid Fed Watch

Bitcoin’s attempt to surge past the $124,000 level proved short-lived, with the cryptocurrency now establishing a trading range between $121,500 and $122,000. This consolidation comes less than three days after Bitcoin soared to a new all-time high exceeding $126,000, marking a period of stabilization following the recent price discovery. The failed push above $124,000 yesterday (October 8) saw BTC retreat to as low as $121,500 before finding support, with volatility diminishing significantly in recent hours.

Bitcoin’s current market capitalization stands at approximately $2.42 trillion, maintaining its dominant position in the cryptocurrency ecosystem with a 56.8% share of the total market. The asset’s inability to sustain momentum above $124,000 suggests potential resistance at that level, though the relatively tight trading range indicates market participants are awaiting clearer directional cues before committing to larger positions.

The cryptocurrency market faces potential heightened turbulence later today (October 9) as Federal Reserve Chairman Jerome Powell prepares to discuss the United States economic outlook. Market participants worldwide will closely monitor Powell’s assessment of inflation risks, economic growth prospects, and the future path of interest rates. The speech represents a critical juncture for risk assets, including cryptocurrencies, as investors seek clarity on the central bank’s policy direction.

Any signals from Powell suggesting the Federal Reserve is more likely to lower benchmark interest rates could increase appetite for risk-on assets like Bitcoin and potentially drive prices higher. Conversely, indications of a more hawkish stance or concerns about persistent inflation could trigger a short-term pullback across cryptocurrency markets. The timing coincides with Bitcoin’s current consolidation phase, potentially amplifying the impact of Powell’s remarks on market sentiment and price action.

While Bitcoin experienced relative stability, altcoins displayed more substantial volatility with Zcash (ZEC) emerging as the standout performer among top-100 cryptocurrencies. ZEC posted a dramatic 35% daily increase, significantly outpacing the broader market. Other notable gainers included Mantle (MNT) with a 9% rise, while Monero (XMR) and Ethena (ENA) registered more modest gains of 3-4%.

Conversely, Aster (ASTER) led the losers with a substantial 12% decline on a 24-hour scale. Several other altcoins including Pump.fun (PUMP), Cronos (CRO), OKB (OKB), Bonk (BONK), Pi Network (PI), and Hyperliquid (HYPE) also entered negative territory, though with less severe losses than ASTER. This mixed performance across the altcoin spectrum highlights the divergent trajectories within the cryptocurrency market beyond Bitcoin’s dominance.

The total cryptocurrency market capitalization declined by 1.3% to $4.23 trillion, reflecting the overall cautious sentiment ahead of Powell’s speech. The varied performance among altcoins underscores the importance of individual project fundamentals and market dynamics, even as broader macroeconomic factors continue to influence the entire digital asset ecosystem.