(MENAFN- DailyFX (IG)) ​​​Bitcoin consolidates above $107,000 after Fed dovish shift

​Bitcoin's current price of $107,831.00 represents a modest 0.013% gain, but the real story lies in its ability to hold these elevated levels. The day's trading range between $106,405.00 and $108,146.00 shows healthy consolidation rather than volatile swings.

​The Federal Reserve's (Fed) dovish commentary about recession risks has fundamentally shifted the investment landscape. When central bankers hint at rate cuts, Bitcoin becomes more attractive as traditional bonds offer lower yields and inflation concerns resurface.

Ethereum tests critical resistance as network adoption grows

​Ethereum's price of $2,487.21 puts it within striking distance of a critical resistance zone between $2,480.00 and $2,520.00.

​What makes this setup particularly interesting is the fundamental backdrop. Institutional adoption of Ethereum-based applications continues accelerating, providing genuine demand beyond speculative trading. This underlying strength could provide the catalyst needed to break resistance.

​Alternative cryptocurrencies show mixed signals

​Solana's 0.00787% decline to $145.00 stands out against the broader market's positive tone.

​However, its underperformance relative to Bitcoin and Ethereum indicates institutional money is flowing toward established players rather than alternative platforms.

​Fed policy shift reshapes cryptocurrency investment thesis

​The Fed's dovish turn on recession risks represents a fundamental shift for cryptocurrency markets. When central bankers openly discuss rate cuts, it signals concerns about economic growth that historically benefit alternative assets like Bitcoin.

​Lower interest rates reduce the opportunity cost of holding non-yielding assets. Simply put, when government bonds pay less, investors need to look elsewhere for returns, and cryptocurrencies increasingly feature in institutional portfolios.

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