Crypto Market Hits Three-Week High as Optimism Grows on Fed Cuts and Regulation
January 31
Markets surged across most major cryptocurrencies Tuesday, with Bitcoin topping $109,600 and Dogecoin leading a broad rally driven by optimism over Federal Reserve rate cuts and clearer regulatory pathways.
Key Highlights
- All three major cryptocurrencies (Bitcoin, Ethereum, Dogecoin) reached multi-week highs. Bitcoin surpassed $109,600, its highest point in three weeks.
- Ethereum rose nearly 8% over the past 24 hours.
- Altcoins, particularly meme coins, led the gains as investor sentiment improved towards potential Fed easing.
The Surge Explained
Dogecoin spearheaded the rally, recently trading near $0.171, a significant gain of over 8% within the past day, regaining previous month losses. Experts cite the following key factors:
- Increasing U.S. regulatory clarity is drawing more capital and users into the crypto ecosystem.
- Recent approval of crypto exchange-traded products (ETPs) is boosting investor confidence that traditional finance capital will flow into altcoins.
- Investors are increasingly hopeful about Federal Reserve interest rate cuts, following dovish comments in recent days.
Bitcoin Performance
Bitcoin traded above $109,200, more than a 3% gain since Tuesday. It reached a three-week high of over $109,600, putting it just over 2% below its all-time high ($111,814, set in May 2023).
External Factors
While focusing on Fed policy, bullish sentiment was also partly fueled by the positive outlook from President Trump’s praise for a new Vietnam trade deal. Separately, crypto payments firm Ripple announced it applied for a national bank charter from the Office of the Comptroller of the Currency.
Market Context
Investor confidence appears partially driven by broader risk assets staging a comeback as rate cut hopes resurface, though macroeconomic headwinds remain, including budget stalemate in Washington, trade tensions, and geopolitical conflicts. Tuesday used to see a reversal of the recent positive net inflows into spot Bitcoin ETFs.
Expert Insights
“Bitcoin is in the passenger seat today and altcoins are leading the market higher. Recent crypto exchange traded product (ETP) approvals may be raising investor confidence that TradFi capital will its way into altcoins… We expect new highs for many tokens in the second half of this year.”
— Zach Pandl, Research Head, Grayscale
“Broader risk assets have perked up… as rate cut hopes come back into focus. Crypto often thrives on a mix of uncertainty and liquidity bets.”
— Joe DiPasquale, CEO, BitBull Capital
