Bitcoin has returned close to $108,000, marking a full recovery from last week's six-figure drop driven by tensions in the Middle East, as macroeconomic signals become risky and cryptocurrency bulls regain technical balance.
The market is now betting on a convergence of two trends: the Fed's moderate comments and the accelerated rotation of retail towards digital assets, traders say.
"Cryptocurrencies will continue their upward trend," said Nick Ruck, director of LVRG Research. "Institutional buying is picking up, and Jerome Powell's comments hinting at rate cuts have quickly changed investor confidence."
Powell said this week that rate adjustments are still on the table, subject to the success of trade agreements and a decrease in inflation, words that the markets took as a code for a pivot by the end of 2025.
Alex Kuptsikevich of FxPro said that the overall market capitalization had previously fallen below its 200-day moving average and rebounded sharply, "confirming that level as a new support."
"If cryptocurrency-related stocks maintain this pace, they could soon catch up with traditional finance," he stated.
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