Risk-On Returns, Crypto Gains Strength
The crypto market in Monday's European session was mixed but trending upwards, after the US dollar weakened and investors reconsidered the direction of US interest rates ahead of this week's inflation release.
Bitcoin (BTC) is currently trading around $90,765, having reached a high of $92,369 before slowing down—indicating a brief euphoria, but market participants quickly returned to caution.
Ethereum (ETH) is trading around $3,116.9, helped by "liquidity trade" sentiment as the market sees the possibility of a rate cut as still viable, although the timing could be pushed back.
Among altcoins, Solana (SOL) strengthened to $139.73 (more aggressive momentum), while XRP weakened to $2.05—indicating a still-selective market rotation: risk-on is entering, but not evenly across all coins.
The biggest macro driver today is the weakening dollar as market concerns resurface about "institutional risk" related to the Fed's independence. When the USD weakens, risk assets, including crypto, typically receive a boost due to increased liquidity and speculative appetite.
However, the crypto market isn't yet at full throttle, as the market also faces a "data wall": investors are awaiting US inflation data that could alter interest rate expectations. If inflation heats up, yields could rise, and crypto is vulnerable to a correction; if it cools down, room for a rally could open up again.
In conclusion, today's European session appears to be a fragile rebound: some support comes from a weakening dollar, but the next direction will be largely determined by inflation data and macro-political headlines that can change sentiment in a matter of minutes.
Source: Newsmaker.id
