Bitcoin Rebounds Near $108,000 Amid Dovish Fed and Retail Crypto Surge

• Bitcoin has recovered to near $108,000 after last week's dip below $100,000 due to Mideast tensions.
• Traders are optimistic due to dovish Fed commentary and increased retail investment in digital assets.
• Institutional purchases and potential rate cuts are boosting investor sentiment, with Bitcoin and Ether showing gains.

Bitcoin is back near $108,000, marking a full recovery from last weeks dip to six figures driven by Middle east tensions, as macro signals turn risk-on and crypto bulls regain technical footing.

The market is now betting on a convergence of two trends: dovish Fed commentary and retails accelerating rotation into digital assets, traders say.

Crypto will continue its bullish trend, said Nick Ruck, director at LVRG Research. Institutional purchases are picking up, and Jerome Powells comments hinting at rate cuts have flipped investor sentiment quickly.

Powell this week said rate adjustments remain on the table, contingent on successful trade deals and softening inflation, words that markets took as code for a late-2025 pivot.

At press time, bitcoin was trading over $107,800, up 1.6% in the last 24 hours. Ether is holding at $2,480 with a 1.8% gain. Solanas SOL , dogecoin , XRP and BNB Chains BNB showed gains under 1%, but could be next to move if BTC and ETH prices further recover.

FxPros Alex Kuptsikevich said that the overall market capitalization had previously dipped below its 200-day moving average and rebounded sharply, confirming that level as new support.

Bitcoin also reclaimed its 50-day average, signaling that momentum may accelerate if sentiment holds, he noted, adding that BTC remains about 5% below its recent highs and is lagging behind traditional tech benchmarks, such as the Nasdaq 100, which has just hit fresh all-time highs.

If crypto-related equities maintain this pace, they may soon catch up with traditional finance, he said.

Meanwhile, underlying demand is strengthening. eToro data shows U.S. retail investors are increasing crypto exposure amid a weakening dollar and rising global uncertainty, with 58% reportedly rebalancing their portfolios to favor digital assets.

According to CoinShares, 89% of current holders plan to increase crypto investments in 2025, while 75% of respondents are actively exploring entry points to the market.

Shaurya is the Co-Leader of the CoinDesk tokens and data team in Asia with a focus on crypto derivatives, DeFi, market microstructure, and protocol analysis.Shaurya holds over $1,000 in BTC, ETH, SOL, AVAX, SUSHI, CRV, NEAR, YFI, YFII, SHIB, DOGE, USDT, USDC, BNB, MANA, MLN, LINK, XMR, ALGO, VET, CAKE, AAVE, COMP, ROOK, TRX, SNX, RUNE, FTM, ZIL, KSM, ENJ, CKB, JOE, GHST, PERP, BTRFLY, OHM, BANANA, ROME, BURGER, SPIRIT, and ORCA.

He provides over $1,000 to liquidity pools on Compound, Curve, SushiSwap, PancakeSwap, BurgerSwap, Orca, AnySwap, SpiritSwap, Rook Protocol, Yearn Finance, Synthetix, Harvest, Redacted Cartel, OlympusDAO, Rome, Trader Joe, and SUN.

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