by “`html
In a notable shift, major cryptocurrencies, led by Bitcoin (BTC), are showing a resurgence following the Federal Reserve’s recent rate cut. Analysts at CoinDesk have indicated that this upward momentum is likely to continue, spurred by a dovish stance from the Fed and a resilient Dollar Index. In this article, we’ll explore the implications of these developments for Bitcoin and other key cryptocurrencies like Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE).
Bitcoin’s Resilience: A Closer Look
Bitcoin, the leading cryptocurrency by market capitalization, recently surpassed $117,900, marking its highest level since August 17. This surge breaks a sideways trend that was observed since Friday and signals the resumption of a slow recovery from early September lows near $107,200, according to CoinDesk data. As of now, Bitcoin has increased by nearly 1% over a 24-hour period.
Ethereum and Other Altcoins Join the Rally
Ethereum’s ether (ETH) token, which ranks second in market capitalization, has also seen positive movement, rising by 2.7%. However, it remains confined within a four-week-long narrowing price range, often referred to as a contracting triangle. Other major cryptocurrencies, including Dogecoin (DOGE), Solana (SOL), and Binance Coin (BNB), have experienced gains of over 4%. Specifically, Solana’s SOL token briefly touched $245, nearing its weekend high. This increase coincides with the Chicago Mercantile Exchange (CME) announcing that it will begin offering SOL options starting October 13, which is anticipated to attract increased institutional interest.
Understanding the Fed’s Influence on Bitcoin
According to Matt Mena, a crypto research strategist at 21Shares, the Fed’s willingness to accelerate rate cuts has created an asymmetric setup for Bitcoin. He noted in an email to CoinDesk, “The dots [interest rate projections
