Major cryptocurrencies resumed a slow upward grind on Thursday, as Bitcoin and leading altcoins posted modest gains in the wake of the Federal Reserve’s cautious policy stance. The resilience of the U.S. dollar limited upside momentum, underscoring the fragile balance between crypto optimism and macroeconomic headwinds.
Market Context: Fed Caution Meets Crypto Optimism
The Federal Reserve maintained a hawkish tone this week, signaling that the pace of interest rate cuts will likely be slower than previously anticipated. The U.S. dollar index (DXY) responded with strength, holding near 105, its highest level in nearly two weeks. A stronger dollar typically weighs on risk assets, including cryptocurrencies.
Yet Bitcoin (BTC) managed to climb 1.2% to trade around $62,400, bouncing from lows near $61,000 earlier in the week. Ethereum (ETH) also edged higher by 0.9% to $2,460, while the broader market displayed a cautiously constructive tone.
Altcoins Join the Recovery
Among major altcoins, Ripple’s XRP rose 2.3% to $0.54, Solana (SOL) gained 1.8% to $142, and Dogecoin (DOGE) advanced 1.6% to $0.124. The moves, while modest, marked a reversal from the pullback seen after the Fed’s policy update earlier in the week.
Traders pointed to ongoing interest in decentralized finance (DeFi) protocols and stable inflows into staking ecosystems as underlying support for altcoins. Solana, in particular, benefited from renewed enthusiasm around its expanding developer base and upcoming network upgrades.
Investor Sentiment: Balancing Hope and Restraint
Investor psychology remains cautious, with optimism tempered by the Fed’s signal that financial conditions will remain tighter for longer. Analysts say crypto investors are increasingly adopting a “wait-and-see” stance, reducing leverage while maintaining core holdings.
“Market participants are adjusting to the idea that rate cuts may come later and in smaller increments than anticipated,” said Laura Mitchell, senior strategist at Vertex Capital. “That hasn’t derailed crypto’s gradual recovery, but it has kept rallies subdued.”
Futures data echoed this cautious optimism, with open interest in Bitcoin perpetual futures rising 3% over the past 24 hours, while funding rates remained neutral — a sign of balanced positioning.
The Dollar’s Grip on Crypto
The resilience of the dollar continues to be a central theme. As the greenback strengthens, global liquidity for speculative assets often tightens, reducing the pace of capital inflows into cryptocurrencies. The correlation has been particularly evident in September, with BTC tending to stall whenever the DXY pushes higher.
Nevertheless, the muted but positive momentum suggests crypto assets are carving out a stabilizing trend despite macro constraints. Institutional activity through spot Bitcoin ETFs has also helped provide a floor for prices, even in the face of a stronger dollar.
Looking Ahead: Data-Driven Moves
Market watchers now turn to upcoming U.S. economic data — including next week’s consumer confidence index and inflation readings — which could determine whether the dollar continues to exert pressure or begins to ease.
For crypto investors, the path forward remains one of patience and discipline. With Bitcoin and altcoins grinding higher in the face of macro resistance, the market is signaling both resilience and vulnerability. The next sustained rally will likely depend not just on crypto-native developments, but also on the global macro backdrop that continues to shape investor appetite.
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