Bitcoin Approaches $108,000 as Fed Rate Cut Expectations Increase
Bitcoin is trading near $108,000, recovering from a recent dip driven by Middle East tensions. Key market trends include:
- Dovish comments from the Fed.
- Increased retail investment in digital assets.
Nick Ruck from LVRG Research noted that institutional purchases are rising due to favorable comments from Jerome Powell regarding potential rate cuts. Powell indicated that rate adjustments depend on trade deals and inflation trends, suggesting a possible pivot in late 2025.
Current prices include:
- Bitcoin (BTC): over $107,800 (+1.6% in 24 hours)
- Ether (ETH): $2,480 (+1.8%)
- Solana (SOL), Dogecoin (DOGE), XRP, and BNB: gains under 1%
Alex Kuptsikevich from FxPro stated that overall market capitalization has rebounded above its 200-day moving average, establishing new support. Bitcoin has also reclaimed its 50-day average, with momentum expected to accelerate if sentiment remains positive.
Despite being about 5% below recent highs, Bitcoin's performance lags behind traditional tech benchmarks like the Nasdaq 100, which reached new all-time highs. Strengthening demand is evident as U.S. retail investors increase exposure to crypto, with 58% reallocating portfolios towards digital assets.
According to CoinShares, 89% of current holders plan to boost crypto investments in 2025, while 75% are actively seeking entry points into the market.