Dogecoin and Cardano Boost Crypto Market as Bitcoin Nears $100,000

The cryptocurrency market is experiencing growth, with Dogecoin and Cardano leading in gains as Bitcoin nears $100,000. This rise is attributed to supportive signals from the Federal Reserve and hints of a trade deal from President Trump. Despite these positive indicators, market analysts caution about potential risks of stagflation affecting economic health and future monetary policy.

The cryptocurrency market experienced a notable uptick with Dogecoin (DOGE) and Cardano’s (ADA) prices leading the charge as Bitcoin (BTC) approached the $100,000 threshold. This surge was largely influenced by dovish cues from the Federal Reserve and comments from U.S. President Donald Trump regarding a forthcoming trade deal, although not everyone is convinced about the sustainability of these gains.

On Thursday, DOGE gained about 5% and ADA increased by 4%, with other major cryptocurrencies like ether (ETH), Binance’s BNB, XRP, and Solana’s SOL all rising between 2% to 3%. The CoinDesk 20 index, an essential gauge of the market’s biggest cryptocurrencies, saw an uptick of 2.2%, marking a robust day for digital assets overall.

In a tantalising tweet from Trump late Wednesday, he hinted at announcing a significant trade deal with a ‘highly respected country’ at a press conference set for 10 a.m. ET. This news has led many outlets to assert this country is likely the U.K. Such an announcement could serve to lift market sentiment and reduce the tariff-induced anxiety that has rattled equities and commodities lately.

Concerns around tariffs have been fluctuating. A resolution that potentially improves cost situations for U.S. businesses could help restore risk appetite across markets, including cryptocurrencies, which often behave like speculative assets. However, the Federal Reserve’s recent decision to keep interest rates unchanged has left traders divided on future moves, with the CME FedWatch Tool showing a 55% chance of cuts come July.

“Bitcoin inching closer to $100,000 signals trader optimistic sentiments amidst a steady rate decision from the Fed,” said Semir Gabeljic from Pythagoras Investments. He noted the pressure surrounding the Federal Reserve Chair could lead to unexpected decisions, contributing to current uncertainties in the financial landscape.

Some analysts are sounding alarms about potential stagflation—a situation where high inflation, stagnating growth, and rising unemployment converges, posing serious threats to economic health. Gabe Selby from CF Benchmarks remarked on the Fed facing an increasingly tight policy conundrum.

“Rising tariffs pushing costs onto consumers will likely reignite inflation in the coming months, while the labour market appears to be weakening,” Selby stated, warning that missteps in timing rate cuts could exacerbate economic distress. However, he still predicts about 100 basis points in cuts will happen by the end of the year.

In the current intense macroeconomic situation, Bitcoin seems to be positioning itself as a key beneficiary of the climate, with record inflows into U.S. spot Bitcoin ETFs noted, including BlackRock’s IBIT, which saw impressive inflows of $4.3 billion last month.

Jupiter Zheng from HashKey Capital added to this sentiment by suggesting that Bitcoin’s recent price fluctuations are indicative of a significant structural shift in the market narrative. “Bitcoin is being increasingly seen as a hedge against macroeconomic and geopolitical instability,” he explained, noting a growing recognition of cryptocurrency as a vital component of resilient investment portfolios.

In summary, while Dogecoin and Cardano have registered substantial gains, the broader market remains cautious as all eyes turn toward Federal Reserve policy changes and how they may impact the crypto landscape.