Bitcoin Rises As Fed Governor Backs Three Rate Cuts In 2025; Ethereum, Dogecoin, XRP Correct: ETH May Have More Room To Run, Says Analyst
Bitcoin rose following dovish comments from Fed Governor Michelle Bowman, who supports three rate cuts in 2025. Ethereum corrected after reaching $4,300, while its market dominance hit an 8-month high. XRP saw a slight decline, and nearly $300 million was liquidated in the crypto market. Analysts predict a volatile week ahead, with Ethereum potentially having more room to grow. The global cryptocurrency market cap increased to $3.98 trillion, and key inflation figures are anticipated this week, which may impact Fed policy.
Bitcoin gained, but altcoins pulled back from Sunday amid Federal Reserve Governor’s dovish comments on rate cuts.
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ETH’s Market Dominance Hits 8-Month High
The apex cryptocurrency ticked higher, alongside a 22% jump in trading volume over the last 24 hours.
Ethereum, which smashed past $4,300 during the weekend, corrected slightly, with trading activity contracting 25% in the 24-hour period.
ETH's market dominance sailed past 13% for the first time in eight months, while Bitcoin's market share dipped below 60%.
XRP slid 0.50%, although the third-largest cryptocurrency looked set to finish the week in the green.
Nearly $300 million was liquidated from the cryptocurrency market in the last 24 hours, with $166 million in bullish longs wiped out.
Bitcoin's open interest rose 1.36% in the last 24 hours. Meanwhile, ETH's open interest soared 26% in the last week, hitting new highs.
"Greed" sentiment strengthened in the last 24 hours, according to the Crypto Fear & Greed Index, suggesting significant buying pressure.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $3.98 trillion, growing by 1.19% in the last 24 hours.
Stocks Futures Rise As Fed Governor Backs Monetary Easing
Stock futures edged higher overnight Sunday. The Dow Jones Industrial Average Futures rose 91 points, or 0.20%, as of 8:43 p.m. EDT. Futures tied to the S&P 500 gained 0.14%, while Nasdaq 100 Futures added 0.07%.
Fed Governor Michelle Bowman, who dissented from the Committee’s decision to hold the policy rates steady last week, advocated for three rate cuts in 2025, owing to labor market weakness.
This week, investors will be watching for key inflation figures, including the consumer price index on Tuesday and the producer price index on Thursday, which might influence the Fed's monetary policy.
Analyst Expects ‘Wild Week’ Ahead
Widely followed cryptocurrency analyst and trader Ali Martinez noted that despite recent highs, Ethereum may have "more room to run," according to the MVRV Ratio.
MVRV, a shorthand for Market Value to Realized Value, is a ratio used to assess the value of a cryptocurrency by comparing its current market value to its realized value. It suggests whether a cryptocurrency is undervalued or overvalued at a given time.
Michaël van de Poppe, another active cryptocurrency commentator, predicted a "wild week" for the market.
"I assume we’ll see BTC at $120,000, and then have a correction in which we’ll see a sharp drop on altcoins," the analyst said. "Ethereum showed much strength, and I think it will stall."
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