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Bitcoin Surges Past $105K as Fed's Powell Welcomes Crypto

Coin WorldThursday, Jan 30, 2025 6:23 am ET

1min read

Bitcoin Price Faces New Upside Potential Amid Revived Trader Optimism at $105,000 Mark

Bitcoin (BTC) has regained the $105,000 level, sparking renewed optimism among traders and analysts. The leading cryptocurrency has been trading sideways in recent weeks but has shown signs of strength, with a 4% recovery following the Federal Reserve's latest monetary policy announcement.

The Federal Open Market Committee (FOMC) maintained the federal funds rate within the target range of 4.25% to 4.50%, a move that was largely anticipated by market participants. During the post-meeting press conference, Federal Reserve Chairman Jerome Powell addressed the current state of the economy and monetary policy, noting that while inflation has decreased from its 2022 peak, the path forward for rate adjustments remains data-dependent.

Powell's remarks regarding digital assets also boosted market sentiment. The Fed chair stated that U.S. banks have the freedom to serve crypto customers, provided they maintain appropriate risk management practices. This stance was interpreted as a supportive signal for the broader crypto industry.

Adding to the market optimism, Senator Cynthia Lummis announced plans to hold public hearings on the Strategic Bitcoin Reserve. This development suggests increasing institutional interest in cryptocurrency at the governmental level, potentially opening new avenues for Bitcoin's integration into traditional financial systems.

The recent price movement has established several key technical levels that traders are watching closely. The range between $101,400 and $105,400 has contained 70% of trading volume over the past twelve days. The current price action near $105,400 represents a crucial resistance level that could determine Bitcoin's short-term direction.

Market analysts have identified $107,200 as another important technical barrier. A successful break above this level could trigger a chain reaction of short-seller liquidations, potentially clearing the path for Bitcoin to challenge its recent all-time high of $109,000.

Trump's election victory in November has played a notable role in Bitcoin's market performance, with the cryptocurrency gaining over 50% since the election results. Market participants have attributed this rally to expectations of more crypto-friendly policies under the new administration.

However, some market experts advocate

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