Bitcoin (BTC) extended its recovery on Thursday, briefly surpassing the $108,000 resistance before settling near $107,356. The flagship cryptocurrency’s resilience comes as the U.S. dollar weakens in response to renewed political pressure on Federal Reserve Chair Jerome Powell and speculation about future monetary policy.
This environment has boosted demand for digital assets as investors seek alternatives to fiat currencies amid ongoing concerns about Fed independence and inflation.
Bitcoin’s ability to maintain upward momentum despite global geopolitical tensions and mixed macroeconomic data is reinforcing its role as the market’s anchor.
Technical indicators, such as a bullish MACD and an RSI approaching overbought territory, indicate sustained interest, but caution is necessary due to the elevated volatility.
Ripple’s Falling Wedge Pattern Offers Hope for a Breakout
Ripple (XRP) has faced persistent selling pressure, with the XRP/BTC pair falling to a seven-month low around 0.00001982. Despite this weakness, technical analysts are closely watching a falling wedge pattern, which often signals a potential reversal.
XRP rebounded from a weekend low of $1.90 to trade at $2.14, hinting at underlying demand even as broader market sentiment remains cautious.
If Ripple can break above key resistance levels, it could trigger renewed interest in altcoins and help shift the market narrative away from risk aversion. However, the path forward depends on both technical confirmation and improving macro conditions.
Did you know?
Despite the recent correction, Bitcoin’s market dominance remains above 50%, underscoring its continued influence over the direction of the entire cryptocurrency sector.
Meme Coins Falter as Speculative Appetite Fades
The meme coin sector, including Fartcoin (FARTCOIN), Pepe (PEPE), and Dogwifhat (WIF), has struggled to recover from June’s volatility. FARTCOIN dropped over 11% to $0.9739, while PEPE and WIF also extended losses.
This underperformance highlights a sharp decline in speculative trading, as investors rotate out of high-risk tokens and into more established assets like Bitcoin and Ethereum.
The divergence between large-cap cryptocurrencies and meme coins underscores a broader shift in market sentiment, with participants seeking stability amid persistent macroeconomic and geopolitical uncertainty.
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U.S. Policy and Inflation Data Remain Key Market Drivers
The crypto market’s next move will likely hinge on upcoming U.S. economic data and policy signals. The May PCE inflation report, due Friday, is expected to show stable but elevated price pressures, which could influence Fed rate expectations and risk appetite.
Meanwhile, President Trump’s criticism of Powell and speculation about Fed leadership changes have added a layer of unpredictability to the policy outlook.
As the dollar weakens and inflation concerns persist, digital assets may continue to benefit from their perceived value as hedges against monetary instability.
Technical and Macro Factors Set the Stage for the Next Move
While Bitcoin’s resilience and Ripple’s technical setup offer hope for a broader market rebound, the outlook remains highly dependent on macroeconomic trends and investor sentiment.
Technical indicators for leading cryptocurrencies are mixed, with some pointing to further gains and others suggesting consolidation.
Traders should remain vigilant for breakout signals, particularly in XRP, while monitoring macro headlines for potential catalysts.
The interplay between technical patterns and fundamental drivers will determine whether the crypto market can escape its current volatility and regain sustained upward momentum.
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