The crypto markets decided to skip the typical Sunday sleepiness, with major cryptocurrencies posting solid gains as traders looked ahead to what could be a pivotal week for risk assets. The Federal Reserve's interest rate decision looms large, and it seems investors are getting their positioning sorted out early.

Here's how the major cryptocurrencies looked as of 8:25 p.m. ET on Sunday:

Stock futures, meanwhile, couldn't be bothered to move much. The Dow Jones Industrial Average Futures dipped a mere 5 points, or 0.01%, as of 7:49 p.m. EDT. Futures tied to the S&P 500 edged up 0.02%, while Nasdaq 100 Futures added 0.03%. Nobody's making any big bets just yet.

Volume Surges Signal Market Engagement

Bitcoin built momentum through Sunday evening after what had been a relatively quiet weekend. The telling detail? Trading volume jumped 29.4% over the last 24 hours. When volume picks up like that alongside price gains, it suggests actual conviction rather than just algorithmic noise. The apex cryptocurrency was tracking to close the week in positive territory.

Ethereum followed suit, hitting an intraday high of $3,148.77. Even more striking, trading volume for the second-largest cryptocurrency nearly doubled. That's not just momentum; that's serious interest.

The action wasn't entirely one-sided, though. Cryptocurrency liquidations reached $437 million over the last 24 hours, according to Coinglass, with long liquidations accounting for over $280 million. Translation: plenty of leveraged traders got squeezed out of their positions, which tends to happen when markets move with conviction.

Bitcoin's open interest rose 2.22% in the last 24 hours. This matters because when open interest climbs alongside spot price, it typically signals new money flowing into the derivatives market rather than just existing positions getting shuffled around.

Despite the gains, the market sentiment slipped back into the "Extreme Fear" zone, according to the Crypto Fear & Greed Index. Apparently, even rallies can't shake the nervousness that's been hanging over crypto markets lately.

The Week's Winners and Market Context

Some lesser-known tokens posted eye-popping gains, though as always with smaller-cap cryptos, liquidity and sustainability are open questions:

The global cryptocurrency market capitalization stood at $3.07 trillion following a rise of 0.74% in the last 24 hours.

The broader market is coming off a winning week, with the S&P 500 and the Nasdaq Composite rising 0.61% and 1.39%, respectively. Those gains were fueled by elevated expectations of a rate cut at the Federal Reserve meeting later this week. The CME FedWatch tool now shows an 88% chance of a 25-basis-point cut, which would mark another step in the Fed's easing cycle.

Adding to the dovish sentiment, the Bureau of Economic Analysis published delayed September inflation data on Friday, with the core Personal Consumption Expenditure index coming in softer than expected. That's the Fed's preferred inflation gauge, and when it runs cool, it gives them more room to cut rates.

Analysts Split on Near-Term Trajectory

Popular cryptocurrency analyst and trader Michaël van de Poppe called Bitcoin's Sunday uptick a "great sign" but issued a word of caution about the CME futures gap created at $89,400. For those unfamiliar, CME gaps represent the difference between the closing price on one trading day and the opening price on the following trading day on a Bitcoin futures chart. These gaps have a habit of getting filled, meaning prices often retrace to close them.

"Although it's a great sign that markets are waking up and we're seeing this momentum, I think it's not bad to be a little aware of the potential CME gap correction on Monday/Tuesday," Van De Poppe said.

"Other than that, let's break this resistance zone and get to $100,000. Sentiment will change when these moves happen," the analyst added.

Ali Martinez, another widely followed cryptocurrency commentator, took a longer view on Ethereum, identifying $1,800 as "one of the best accumulation zones" before a potential bull run toward $10,000. That's quite the forecast, suggesting Martinez sees the current pullback in Ethereum as a buying opportunity for patient investors willing to wait for the next major move higher.

The setup heading into the new week is intriguing: crypto showing signs of life, traditional markets hovering near highs, and the Fed likely to deliver another rate cut. Whether the momentum holds or that CME gap pulls prices back will tell us a lot about how confident traders really are right now.