Solana shines brighter than Bitcoin and Ethereum as corporate treasury moves propel crypto gains amid bets on Federal Reserve cuts.

Major cryptocurrencies experienced slight increases late on Monday, as investors anticipated a potential Federal Reserve rate cut. Bitcoin saw a minimal rise to $111,400.78, XRP went up by 1.6% to $2.95, and Ethereum slipped to $4,297.09 after reaching $4,380.60 earlier in the day.

Solana, however, stood out with a nearly 3% gain, driven by Forward Industries announcing plans to establish a $1.65 billion SOL treasury, supported by Galaxy Digital, Jump Crypto, and Multicoin Capital. The news propelled Solana’s surge ahead of other major cryptocurrencies.

The surge in equity markets on Monday contributed to the overall positive sentiment. The CME Group’s FedWatch tool revealed that 89.6% of traders anticipated a 25-basis-point rate cut by the Federal Reserve, with some even speculating on a 50-basis-point decrease.

A low-rate environment often leads to increased investor risk appetite, resulting in gains for both equities and cryptocurrencies. Mergers and acquisitions activity in the digital asset space also remained strong, with software firm Strategy purchasing 1,955 Bitcoins for approximately $217.4 million, solidifying its position as a major investor in Bitcoin.

Institutional faith in Bitcoin remained resilient despite recent market fluctuations. El Salvador’s announcement of acquiring 21 Bitcoins to commemorate the fourth anniversary of its cryptocurrency law underscored the growing acceptance of digital assets on a governmental level.

Rachel Lucas, an analyst at BTC Markets, emphasized Bitcoin’s scarcity as a key factor attracting investors looking for safe-haven assets amidst uncertain macroeconomic conditions. Meanwhile, sentiment among retail traders on Stocktwits leaned bearish for Bitcoin and XRP while Ether sentiment was highly bearish.

Attention now turns to Thursday’s inflation report, which is expected to influence the Federal Reserve’s rate decision. Economists surveyed by Dow Jones Newswires and The Wall Street Journal forecasted a 2.9% year-over-year increase in the consumer price index for August, up from 2.7% in July.

As market participants await further macroeconomic developments, the cryptocurrency landscape remains dynamic, with Solana emerging as a standout performer gaining momentum from corporate endorsements and ongoing market dynamics. The intricate interplay between traditional financial markets and digital assets continues to shape the overall investment landscape, making it essential for investors to stay informed and adaptable to changing market conditions.