When inflation softens, markets bet the Fed pauses rate hikes sooner. Lower rates = weaker dollar = crypto (non-yielding asset) becomes attractive. Risk appetite returns to stocks and altcoins. Today's rally wasn't random—it was hedge funds rebalancing into risk.
Bitcoin broke through $65K and is testing $66K resistance. If it holds above $65,500 by Friday, the next targets are $68K–$70K. But institutional selling pressure around $66K is real. Expect volatility, not a straight line higher.
Ethereum surged above $1,950, targeting $2,000 psychological level. XRP held $1 support and bounced to $1.08. Altcoins are rotating into favor as Bitcoin dominance eases. But watch for profit-taking if Bitcoin retests $65K by tomorrow.
Fed speakers could push back on 'dovish' expectations this week, saying rate cuts are not imminent. A single hawkish comment could erase today's gains. Bitcoin rallied 3%, but a 5% daily reversal is possible if Fed narrative shifts.
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