$XRP BTC and cryptocurrencies rise, but the resilient dollar is a concern.
Following the recent 25 basis point cut by the Federal Reserve, major cryptocurrencies like Bitcoin (BTC), XRP, Solana (SOL), and Dogecoin (DOGE) have resumed their slow ascent. Bitcoin surpassed $117,900, its highest level since August, while analysts suggest that BTC could reach $124,000 and Ether (ETH) $5,000 by the end of the year, driven by a more dovish Fed policy (acceleration of easing).
The resilience of the dollar index (DXY). Despite the dovish projections from the Fed, the dollar has recovered, which could lead to a financial adjustment and weigh on crypto assets. This strength of the dollar is attributed to comments from Fed Chair Jerome Powell that rapid cuts are not guaranteed and that quantitative tightening (balance sheet reduction) is ongoing.
Although the Fed's rate cut has provided an upward boost to cryptocurrencies, the strength of the dollar presents a significant risk that could hinder the path to new all-time highs.
