Uniswap jumps 22% and altcoins rip while bitcoin stalls before the Fed

Bitcoin is trading flat while the rest of the crypto market showing signs of a capital rotation.

The largest token traded around $65,800 on Wednesday, down 0.3% over 24 hours but up 7.4% on the week, per CoinDesk data, holding near $66,000 as traders waited on the Federal Reserve's first rate decision under new Chairman Kevin Warsh.

The action was in altcoins. Uniswap's UNI was the standout, jumping 22.5% to $3.53 after Standard Chartered initiated coverage with a $100 price target by 2030, with the bank's digital assets research head Geoffrey Kendrick calling the decentralized exchange a foundational layer of the on-chain economy.

Hyperliquid's HYPE rose 7.8% on the day and 34.3% on the week, and solana added 14.7% over seven days even while flat on Wednesday. Ether gained 1.4% to $1,793 and is up 10.4% on the week. XRP slipped 0.9% to $1.22.

The macro backdrop kept improving for risk assets, just not for bitcoin. Brent crude fell below $79 a barrel, its lowest in more than three months, after sliding 15% over four sessions in its longest losing run this year.

The drop reflects bets that the US-Iran deal to reopen the Strait of Hormuz will unleash a wave of supply.

The agreement gives Iran the right to sell oil immediately and access to a $300 billion development fund, with the US Treasury set to issue waivers for Iranian crude and petrochemical exports once the memorandum is signed, in exchange for a commitment never to seek a nuclear weapon.

Bonds rallied, and benchmark Australian and Japanese 10-year yields slipped about five basis points, or hundredths of a percentage point. US stocks were softer, with the Nasdaq 100 down almost 2% on Tuesday as chipmakers pulled back, though S&P 500 futures edged up 0.2%.

That leaves the Fed. Cheaper oil eases the inflation picture just as Warsh takes over, and the decision is the first read on how the new chair approaches rates.

Bitcoin has tracked risk assets closely throughout the Iran swings, so the Fed's tone matters more for the next move - and that money that is moving is going into altcoins rather than the majors.