Crypto Poised As Fed Signals Stir New Wave Of Market Movement

(MENAFN- The Arabian Post) Bitcoin remains anchored just above the $113,000 mark and Ethereum hovers near $4,600, as markets digest fresh signals from the Federal Reserve and institutional interest.

Bitcoin has regained footing near $113,000 following a textbook flash crash over the weekend triggered by a whale's sell‐off of 24,000 BTC, which sparked over $800 million in forced liquidations across crypto markets. Market behaviour since suggests cautious optimism, with support holding firm at around $110,000-analysts now eye this level as a critical foundation for recovery.

On chart terms, traders are watching a breakout above the $115,000 resistance zone. A sustained move beyond $115K could see Bitcoin rally toward $120,000, buoyed by renewed ETF inflows and reduced leverage. Conversely, failure to hold above $110,000 risks a slide toward $108,000 or even $105,000.

Ethereum stands out, gaining about 4 % to trade at approximately $4,589-just shy of its all‐time high-on robust demand and ETF inflows. Meanwhile, the broader crypto market cap has rebounded, edging closer to the $4 trillion mark as 90 of the top 100 coins turn green.

Federal Reserve developments continue to underpin sentiment. A dovish tone from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium earlier this week spurred a surge, lifting Bitcoin to over $124,000-even as markets reeled from that upward spike and a swift correction. Powell's comment that rate cuts could be on the table by next month reignited risk appetite, adding tailwind to cryptocurrencies and related equity names.

Amid the tumult, technical indicators signal mixed outlooks. Bitcoin's MACD remains below neutral-suggesting recovery would require improving sentiment -while certain charts hint at a potential bull trap, as the latest price peak was not confirmed by a rise in RSI, pointing to possible fading buying momentum.

See also Ethereum Whales Increase Holdings by 200,000 ETH in 48 Hours

Institutional engagement stays strong, underlined by steady ETF inflows. On a single day, Bitcoin and Ethereum ETFs recorded inflows of $88.2 million and $455 million respectively-action that reinforces the plausibility of a rally toward $120,000 should momentum endure.

However, geopolitical and policy risks are never far off. Pressure on the Federal Reserve-particularly from U. S. political manoeuvres-could destabilise markets. Some analysts warn that if Bitcoin fails to reclaim the $111K–$112K zone, further decline toward $100K cannot be ruled out.

Arabian Post – Crypto News Network

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