Dollar Weakens, Crypto Shines on Institutional Flows
The cryptocurrency market strengthened on Monday, as investor interest in digital assets increased amid a weakening US dollar. Bitcoin (BTC) rose around 3.5% to $114,000, while Ethereum (ETH) traded around $4,200 and Solana was at $214, up around 4%. This strengthening marked a significant rebound after a mild correction the previous week, and confirmed that institutional capital flows are once again supporting the crypto market.
The main factor driving this rally is expectations that the Federal Reserve will cut interest rates sooner, amid the growing risk of a US economic slowdown. The weakening dollar makes digital assets more attractive as a hedge. Furthermore, positive sentiment also came from reports of increased inflows into crypto-based investment products, reflecting large investors' confidence in the sustainability of the sector's bullish trend.
However, analysts warn that volatility remains high ahead of the release of US employment data later this week. Stronger-than-expected data could fuel concerns that the Fed is delaying policy easing, potentially depressing the crypto market again. In the short term, Bitcoin is expected to move in the US$110,000–115,000 range, while Ethereum could potentially test resistance above US$4,200 if positive sentiment persists.
Source: Newsmaker.id
