Renewed investor optimism after a wave of volatility 

CRYPTOCURRENCY markets remain turbulent as investor sentiment continues to react to recent signals from the Federal Reserve.

Last week, the Fed hinted at plans to take a more cautious approach to interest rate cuts in 2025. Analysts suggest these updates on monetary policy have introduced a layer of uncertainty, shaking confidence.

Bitcoin (BTC) has seen significant price swings, ranging between $88,800 and $95,000 in the past 24 hours, while Ethereum (ETH) bounced from $2,900 to just above $3,100.

Meanwhile, altcoins show signs of renewed momentum, with Dogecoin (DOGE), Hedera (HBAR), and Aave (AAVE) leading gains on Luno overnight.

Some analysts interpret Bitcoin’s swift rebound from sub-$90,000 levels as a potential sign of seller exhaustion, though whether it marks a turning point remains to be seen.

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In the Markets

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Total crypto market cap

$3.28 trillion (+1.1%)

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What Bitcoin did yesterday

Daily high $95,443  |  Daily low $88,800

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Bitcoin market capitalisation

$1.88 trillion (+2.07%)

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Bitcoin 24-hour trading volume

$71.35 billion (+138.06%)

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SP500

+0.16%

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Fear and Greed Index

Neutral

‍Source: Coinmarketcap

The Fear and Greed Index measures volatility, market momentum/ volume, social media, surveys, dominance, and Google search trends to gauge market sentiment.

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Bitcoin Relative Strength Index (RSI) (14)

67.08

Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in price, while 30 or below indicates an oversold or undervalued condition.

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Post Script…

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Cautionary Notes

It’s definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.

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