The cryptocurrency market is experiencing renewed momentum as major digital assets rebound from recent sharp declines. After a volatile week marked by macroeconomic data and shifting regulatory expectations, Bitcoin (BTC) briefly reclaimed the $100,000 mark before pulling back slightly. Meanwhile, altcoins are showing strong gains, with several outperforming BTC amid growing optimism around potential policy shifts in the U.S. regulatory landscape.
Market-Wide Recovery Amid Regulatory Optimism
Bitcoin surged nearly 3% to temporarily surpass $100,000 following weaker-than-expected inflation data and signs of a pro-crypto shift at the U.S. Securities and Exchange Commission (SEC). The rally came after a steep drop earlier in the week that saw BTC fall below $90,000 to a low of $89,941. Although price has since retreated slightly—trading around $99,650—the rebound signals renewed buying interest.
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The broader market followed suit, with total crypto market capitalization climbing nearly 3% to $3.49 trillion. Ethereum (ETH) rose close to 5%, reclaiming the $3,300 level and settling near $3,371. Solana (SOL) jumped over 7%, while Ripple (XRP) surged nearly 10%—adding 30% in just one week. Other notable gainers include Dogecoin (DOGE), Cardano (ADA), Tron (TRX), Stellar (XLM), Chainlink (LINK), Hedera (HBAR), Polkadot (DOT), and Litecoin (LTC), all posting significant increases.
Key Drivers Behind the Rally
Two primary factors fueled the recovery:
- Inflation Data: The latest Consumer Price Index (CPI) report showed inflation cooling toward the Federal Reserve’s 2% target, raising hopes for future rate cuts. Lower interest rates typically boost risk assets like cryptocurrencies.
- Regulatory Shifts: With a new administration set to take office, Republican SEC commissioners Hester Peirce and Mark Uyeda are preparing to reassess whether digital assets qualify as securities. This could bring much-needed clarity to the industry.
Analysts believe that even before formal policy changes, market sentiment is being influenced by anticipated reforms. Paul Atkins, Trump’s nominee for SEC chair, is expected to halt the aggressive enforcement actions led by former chair Gary Gensler.
Analysts Warn of Increased Volatility Ahead
Despite the bullish momentum, experts caution that volatility may intensify in the coming months. According to QCP Capital, global markets are already reacting to potential policy shifts—even before inauguration day.
“Trump’s actions have already impacted markets... we expect higher volatility around the inauguration as the market digests and adjusts.”
While employment data exceeded expectations (+256K vs. +165K forecast), inflation remains a concern—especially with proposed tariffs on China that could push prices higher. As bond yields rise, markets now price in only two rate cuts in 2025 and 2026.
Still, there’s optimism: Trump’s administration includes officials known for supporting blockchain innovation. Multiple pro-crypto executive orders are expected, offering short-term tailwinds for digital assets.
Altcoins Outperform as Market Sentiment Shifts
Altcoins have surged more than 8%—double Bitcoin’s gains—driven by strong on-chain activity and renewed investor confidence.
- Solana (SOL): Gains fueled by AI-integrated projects and rising network usage.
- Stellar (XLM) and Ripple (XRP): Both up sharply, with XLM rising 14% and XRP over 12% in a single day. Notably, both were co-founded by Jed McCaleb and share similar goals: revolutionizing cross-border payments through decentralized networks.
- Polygon (MATIC): Up 5% to $0.48, benefiting from growing demand for scalable blockchain solutions.
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In-Depth Price Analysis
Bitcoin (BTC): Testing Key Resistance Levels
After a turbulent week, Bitcoin showed resilience. It began positively last week, rising 3.99% to settle at $102,228. However, bearish pressure returned Tuesday with a 5% drop below the 50-day SMA to $97,019. Wednesday saw further losses down to $92,546 before stabilizing at $95,121.
Sellers maintained control Thursday, pushing BTC to $92,710 (-2.53%). A Friday bounce brought it to $95,799, but it failed to break above the 20-day SMA and closed at $94,818. Weekend trading remained flat: $94,542 on Saturday and $94,484 on Sunday.
A dramatic Monday crash broke the $90,000 level ($89,397 low), but buyers stepped in, recovering losses to close at $94,492. Tuesday saw a 2% gain above the 20-day SMA ($96,566). Wednesday’s optimism drove BTC up 3.61%, breaking both the 50-day SMA and $100K to close at $100,050.
Currently, BTC trades below $100K again (~$99,650), indicating resistance remains strong.
Ethereum (ETH): Struggling for Sustained Momentum
ETH peaked at $3,744 early last week but lost steam as bearish sentiment returned. Tuesday’s 8% drop broke key support levels—including the 20-day and 50-day SMAs—and closed at $3,381.
Further declines followed: Wednesday down to $3,217 ($3,327 close), Thursday falling another 3.2% to $3,220. A modest recovery Friday (+1.45% to $3,267) held through Saturday ($3,283) and Sunday ($3,266).
This week started bearishly with a drop to $2,972—briefly below the 200-day SMA—before buyers intervened. ETH stabilized at $3,137 despite nearly a 4% loss. Tuesday rebounded +3% to $3,236; Wednesday surged nearly 7%, reclaiming $3,400 and closing at $3,450.
Currently, ETH has pulled back ~2%, trading near $3,381.
Solana (SOL): Volatile Rebound Above Key Averages
SOL failed to break the 50-day SMA Tuesday, triggering a 7% drop to close at $202. Wednesday extended losses to $188 before recovering to $197—just above the 20-day SMA.
Thursday intensified sell pressure: down over 6% to $185. Friday saw a slight rebound to $193 high but closed lower at $187. Weekend action was choppy; buyers edged out sellers with minor gains closing at $188.
Early this week, SOL plunged to $169 before bouncing back to close at $182 (-3%). Tuesday recovered +2.57% to $187. Wednesday exploded over 10%, breaking $200 and the 20-day SMA to settle at $205.
Now trading below $200 again (~$198), sellers are testing support.
Bittensor (TAO): Sharp Recovery After Major Drop
TAO declined most of last week: broke 50-day SMA Tuesday below $500 ($499 close). Wednesday dropped further below 20-day SMA to $439 ($466 close). Thursday fell over 7% to $432.
Friday showed signs of stabilization (+1.5% to $439), followed by Saturday’s +1.41% gain ($445). Sunday faded slightly (-1%) ending at $442.
Bearish momentum peaked Monday with a drop below the 200-day SMA to $384—before rebounding to $420. Tuesday dipped again (-1% to $416). Wednesday turned bullish: up over 10%, reclaiming the 200-day SMA and closing near $459.
Now down ~3%, TAO trades around $447.
Ripple (XRP): Breakout Above Key Pattern
XRP broke out dramatically Wednesday after overcoming a descending wedge pattern and surging nearly 18% past the $3 resistance level to close at $3.14.
Earlier in the week: Friday rebounded +8% from $2.39 low to close at $2.57; Sunday corrected -3% to $2.50.
Week began bearishly with a drop to $2.33; recovered +0.79% to close at $2.52. Tuesday broke above $2.60 resistance ($2.66 close). Wednesday’s explosive move confirmed bullish momentum.
Currently correcting -2%, XRP trades near $3.08—watching for retest of $3 support.
Uniswap (UNI): Testing Critical Resistance
UNI broke above 20-day SMA Wednesday but stalled near $14.50 resistance. Now retracing -3%, trading around $14.08.
Prior week: Thursday crashed to $12.39; Friday bounced +8% to close at $13.94. Saturday fell -2% ($13.64); Sunday flat ($13.63).
Monday hit new low ($12.08), recovered slightly ($12.89; -5.41%). Tuesday rose +3% ($13.32). Wednesday broke SMA ($14.52) but failed to clear 50-day SMA.
Bullish only if breaks above $14.50 with volume.
Pudgy Penguins (PENGU): NFT Token Rebounds
PENGU dropped sharply earlier in the week: Tuesday fell -14% to $0.032 before recovering to $0.035. Thursday broke below 20-day SMA (-7%). Friday tested recovery ($0.035 high) but faded to close at $0.033.
Saturday fell -2% ($0.032); Sunday edged up ($0.033). Monday plunged to $0.028 before rebounding above $0.030 ($0.031 close; -5%). Tuesday rose +2% ($0.032). Wednesday spiked +11% to $0.035.
Now correcting -6%, trading near $0.033.
Frequently Asked Questions (FAQ)
Q: Why did Bitcoin briefly cross $100K?
A: Weaker inflation data and expectations of pro-crypto SEC reforms boosted investor confidence and triggered a short-term rally.
Q: Is the SEC changing its stance on crypto?
A: Republican commissioners plan to reassess whether cryptocurrencies are securities—a move that could reduce regulatory uncertainty if implemented.
Q: Are altcoins safer than Bitcoin right now?
A: No—altcoins are often more volatile than BTC during market swings due to lower liquidity and speculative trading behavior.
Q: What should traders watch for next?
A: Key levels include BTC’s hold above $98K, ETH’s retest of $3,450 resistance, and XRP’s ability to maintain above $3.
Q: Could new tariffs affect crypto prices?
A: Yes—tariffs may increase inflation fears, delay rate cuts, and reduce risk appetite unless offset by clear crypto-friendly policies.
Q: How can I track real-time crypto movements?
A: Use trusted platforms offering live charts and order book depth to monitor price action without emotional bias.
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