Market Overview: Bitcoin Tests Resistance as Trump Targets Fed Chair
- Bitcoin recovers from geopolitical tensions, briefly surpassing the $108,000 resistance level before stabilizing around $107,356.
- Ethereum and Ripple extend gains with bullish momentum in derivatives markets, supported by recovering open interest.
- Investor focus shifts to Trump's renewed criticism of Fed Chair Jerome Powell, raising concerns about central bank independence.
Bitcoin (BTC) continues its recovery as interest in digital assets grows amid uncertainty around U.S. Federal Reserve policies. Major altcoins like Ethereum (ETH) and Ripple (XRP) are gaining traction, reflecting heightened investor confidence.
Trump's Remarks Weaken Dollar, Boost Crypto
President Donald Trump reignited criticism of Fed Chair Jerome Powell, calling him "terrible" and hinting at potential replacements during the NATO summit. This sparked fears over central bank autonomy, coinciding with Powell's cautious stance on rate cuts despite Trump's demands.
The U.S. Dollar Index (DXY) fell to 97.17, marking an 11.82% decline since January. A weaker dollar often benefits risk assets like cryptocurrencies.
👉 Why the Fed's decisions matter for crypto traders
Key Data: Spot ETF Inflows Surge for Bitcoin and Ethereum
- Bitcoin spot ETFs recorded $547M in inflows Wednesday, marking 12 consecutive days of net investments. Total inflows now exceed $48.14B.
- Ethereum spot ETFs saw $60M added, bringing cumulative inflows to $4.1B.
| Metric | Bitcoin ETF | Ethereum ETF |
|---|---|---|
| Daily Inflow | $547M | $60M |
| Total Inflows | $48.14B | $4.1B |
| Net Assets | $134B | $10B |
Data via SoSoValue
Technical Analysis: Bitcoin Consolidates After Breakout
BTC/USDT 12-Hour Chart Highlights:
- Current Price: $107,356 (testing $108,000 resistance)
- Bullish Signals: MACD buy signal, RSI above midline
- Support Levels: $105,185 (50 EMA), $103,423 (100 EMA)
A breakout above $108,000 could target $110,000, though traders should monitor key EMAs for potential reversals.
Altcoin Watch: Ethereum and Ripple Build Momentum
Ethereum (ETH)
- Price: $2,451 (upward trend)
- Resistance: $2,481 (50 EMA)
- Potential Targets: $2,570 near-term, $2,882 mid-term
Ripple (XRP)
- Key Level: $2.21 (100 EMA resistance)
- Pattern: Potential wedge breakout
- Caution: RSI retreating from 55; watch $2.00 support
👉 How to identify altcoin trading opportunities
FAQs: Crypto Market Dynamics
How do Fed rate decisions impact crypto?
Interest rate hikes typically strengthen the dollar, pressuring Bitcoin and altcoins. Conversely, rate cuts often boost crypto prices.
What’s the effect of ETF inflows?
ETF investments increase liquidity and institutional participation, usually signaling bullish sentiment.
Why are halving events important?
Bitcoin halvings reduce mining rewards, constricting supply. If demand holds steady, prices often rise post-halving.
How do exchange listings affect tokens?
Listings improve accessibility and liquidity, frequently driving short-term price appreciation.