The cryptocurrency market is seeing renewed energy as Bitcoin, Ethereum, and XRP post gains, coinciding with a notable drop in the US Dollar. This shift comes amid heightened political drama, with President Donald Trump intensifying his criticism of Federal Reserve Chair Jerome Powell and openly discussing the possibility of appointing a new Fed chief. The resulting uncertainty around US monetary policy and the Fed’s independence is driving investors to seek refuge in digital assets, boosting both prices and inflows into crypto ETFs .
Market Moves: Crypto Climbs as Dollar Slides
Bitcoin (BTC) has rebounded from recent geopolitical-driven losses, briefly surpassing the $108,000 resistance before settling near $107,356. This recovery is underpinned by growing investor interest in digital assets, as concerns mount over the Federal Reserve’s future direction and independence . Ethereum (ETH) and XRP are also extending their recoveries, supported by a steady derivatives market and renewed momentum in open interest.
DXY daily chart
Political Tensions: Trump vs. Powell
President Trump’s latest remarks have shifted market sentiment. At a recent NATO summit, Trump labeled Powell as “terrible” and hinted at having a shortlist of potential replacements. His repeated calls for interest rate cuts contrast sharply with Powell’s cautious approach, as the Fed Chair recently told the US Senate that more time is needed to assess inflation risks, especially with higher tariffs potentially pushing prices up this summer .
The US Dollar Index (DXY) has dropped to 97,17, marking an 11,82% decline from its January peak. This weakening dollar is making risk assets like cryptocurrencies more attractive, as lower dollar strength typically reduces the cost of leverage and increases appetite for alternative investments .
ETF Inflows: Investors Hedge with Crypto
Amid the political uncertainty, spot Bitcoin and Ethereum ETFs are seeing robust inflows. Data from SoSoValue shows over $547 million entered BTC spot ETFs on Wednesday, marking 12 consecutive days of net inflows and bringing total inflows to $48,14 billion. Ethereum spot ETFs also attracted $60 million in new investments, with total inflows now exceeding $4,1 billion .
Technical Picture: Bitcoin, Ethereum, and XRP
• Bitcoin is consolidating after its recent breakout, with technical indicators like the MACD and RSI signaling bullish momentum. Key support levels to watch include the 50-period EMA at $105,185 and the 200-period EMA at $99,608. A move above $108,000 could open the door to the $110,000 resistance .
BTC/USDT 12-hour chart
• Ethereum is holding its uptrend near $2,451, with downside protected by the 100-period EMA at $2,426. Resistance sits just below $2,481, and a breakout could target $2,570 and $2,882 in the coming sessions.
ETH/USD 12-hour chart
• XRP is testing resistance at the 100-period EMA ($2,21) and is approaching a potential breakout from a falling wedge pattern. While the MACD remains bullish, traders should watch for a possible pullback if the RSI dips below the midline. Key support levels include $2,00 and $1,91.
XRP/USD 12-hour chart
Macro Factors: Why Crypto Is Rallying
Macroeconomic events, especially those involving the Federal Reserve and US interest rates, have a direct impact on crypto prices. Lower interest rates and a weaker dollar generally support higher crypto prices, as they make risk assets more attractive. The current political uncertainty and the prospect of a less independent Fed are pushing more investors toward digital assets as a hedge.
