Bitcoin

is back near $108,000, marking a full recovery from last week’s 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 retail’s 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 Powell’s 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. Solana’s SOL

, dogecoin

, XRP

and BNB Chain’s BNB

showed gains under 1%, but could be next to move if BTC and ETH prices further recover.

FxPro’s 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.