🌎 Immutable X and AI Tokens Surge Ahead of Federal Reserve Meeting

Cryptocurrency prices showed mixed movements as traders focused on the upcoming Federal Reserve meeting. The crypto fear and greed index remained in the fear zone.

Immutable X (IMX) Leads the Pack

Immutable X, the gaming and non-fungible token (NFT)-focused coin, surged by 17.7%, reaching its highest level since August 31. This represents a nearly 60% increase from its lowest point in August.

The rise in Immutable X was driven by a significant increase in total NFT sales within its ecosystem, which surged by over 125% in the last 24 hours. This surge was primarily due to the Guild of Guardians Heroes, whose sales spiked by 145% to $647,067.

However, Immutable’s NFT sales have experienced a long-term downward trend over the past few months. Sales dropped by 33% in the last 30 days to $15 million, while the number of buyers fell by 31% to 12,177.

Celestia and Bittensor Show Gains

Celestia, a leading player in modular data, rose by 15%, reaching its August 26 high. Bittensor also saw an increase of 13%, reaching its June 24 high. The demand for these tokens increased, with Celestia’s 24-hour volume rising by 23% to $138 million and Bittensor’s volume rising by 5% to $85 million.

Bittensor benefited from the growing interest in artificial intelligence (AI)-focused coins and stocks. Nvidia shares have rallied by 9% in the last five days, while Microsoft rose by 7%. Microsoft, a major investor in OpenAI, the maker of ChatGPT, saw increased positive sentiment, with 85% of users being bullish.

Federal Reserve Decision Looms

Looking ahead, the main catalyst for these altcoins will be Wednesday’s Federal Reserve decision. According to a poll, 52% of participants expect the Fed to cut rates by 0.50%, while 47% foresee a 0.25% cut.

In theory, these tokens should perform well when the Fed starts cutting interest rates, as it would incentivize investors to move to riskier assets. However, there is also a risk that these coins could retreat, as the rate cut may already be priced in by market participants.

This likely explains why the crypto fear and greed index has remained in the fear zone at 34. Historically, cryptocurrencies tend to drop when fear dominates market sentiment.