Bitcoin & Friends: A Slow Climb to Glory (With a Side of Dollar Drama)

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Markets

What to know:

  • Bitcoin hit its highest level since August 17, giving the market a little pep talk after the Fed’s rate cut.
  • One analyst boldly predicts BTC and ETH will reach new all-time highs. Hold on to your hats!
  • Meanwhile, the dollar’s hanging in there like an old sitcom character, resisting the Fed’s attempts at a quiet exit.

Well, folks, it’s happening. According to the all-knowing experts at CoinDesk, Bitcoin is on its slow and steady comeback trail after the Fed gave rates a little trim by 25 basis points to 4%. Not exactly a dramatic makeover, but it’s a start.

Bitcoin, that lovable, volatile big brother of the crypto world, has managed to top $117,900. That’s the highest it’s been since August 17th. It’s like the comeback of a washed-up celebrity-suddenly relevant again. The sideways shuffle from Friday ended, and Bitcoin started flexing its muscles, bouncing back from the early September lows of $107,200. Still, don’t get too excited; it’s up just 1% over 24 hours, but hey, progress is progress!

Ethereum’s little sibling, Ether (ETH), also joined the rally, climbing 2.7%. But it’s still in the tight spot of a four-week price range-kind of like a teenager in a growth spurt, uncertain whether to get a haircut or just let it go wild.

Dogecoin, Solana, and BNB (oh my!) were all up over 4%, while XRP decided to casually cruise up almost 3%. XRP’s like, “Hey, I’m still here, I’ve got momentum, just need to find a way out of this descending triangle!”

Solana’s SOL token got a little boost from CME, which decided to let institutions dabble in SOL options starting October 13. Think of it like Solana getting an exclusive VIP pass to the grown-up party, where big wallets come to play. Now that’s a power move!

Matt Mena from 21Shares is all in on the “Bitcoin-to-the-moon” theory. According to him, the Fed’s eagerness to ease interest rates opens the door for Bitcoin to go even higher. Like a rocket taking off after a long, slow countdown. He predicts Bitcoin could hit new all-time highs of $124,000 by the end of October. Can you feel the excitement? ETH could push past the psychological $5,000 barrier. Break out the party hats! 🎉

The Dollar Index: The Uninvited Guest Who Won’t Leave

But hold on a minute! The dollar’s showing some muscle, and not in a good way. Despite the Fed’s best attempts at being dovish, the dollar index (that’s the DXY for you cool kids) has made a sneaky comeback to 97.30. So much for the weak dollar dream. Maybe the Fed’s moves are already priced in, but the DXY is like that stubborn uncle at a family gathering who just won’t go home.

Despite all this dovish chatter, the dollar’s holding strong against the euro, and even recovering from a dip below 96.37 in early July. The DXY has fallen 10% this year, thanks to the Fed’s rate-cutting rumors, but don’t hold your breath; the greenback’s not exactly planning a retirement party just yet.

Powell, the head honcho of the Fed, made sure to remind everyone that rapid rate cuts aren’t on the menu just yet. In fact, inflation’s still hanging around, and quantitative tightening is still in full swing. So, yeah, that dollar strength might stick around longer than we’d like. Looks like it’s here to rain on Bitcoin’s parade.

Tail Risk Pricing: Because Why Not Worry About The Apocalypse?

Now for some fun! It seems the market’s getting a bit jittery, and the term “tail risk” is being thrown around like confetti at a New Year’s party. What’s that, you ask? Well, tail risk refers to those low-probability, high-impact events that could send everything crashing down. You know, like a market crash or the rise of sentient AI taking over the world. Totally normal stuff.

Crypto platform BloFin reports that sophisticated traders are loading up on tail protection, just in case the whole system falls apart. They’re using something called a “put spread” strategy, which basically means they’re betting that Bitcoin’s price will drop. So, if the apocalypse does come, at least they’ll have their bases covered. Always a good idea, right?

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2025-09-18 10:14