Dogecoin and Cardano Surge in Crypto Market Amid Traders’ Considerations of Fed Decisions

Bitcoin (BTC) approached the $100,000 mark on Thursday, as significant cryptocurrencies, such as dogecoin (DOGE) and Cardano’s ADA, experienced notable gains. This upturn in the crypto market was driven by signals from the Federal Reserve indicating a softer monetary policy, alongside hints of an upcoming trade agreement from U.S. President Donald Trump.

DOGE saw a 5% increase, while ADA was up by 4%. Ether (ETH), BNB Chain’s BNB, XRP, and Solana’s SOL each recorded gains between 2% and 3%. The CoinDesk 20, a comprehensive index tracking major digital assets, climbed by 2.2%.

Late on Wednesday, Trump took to social media, stating that the U.S. is set to announce a “significant” trade agreement with a respected nation during a press conference scheduled for 10 a.m. ET. Reports later identified this nation as the U.K.

The President suggested this announcement would signal the beginning of “many” such agreements, generating excitement over a potential easing of the months-long uncertainty fueled by tariffs. This news could enhance risk appetite across financial markets.

Concerns over tariffs have weighed on equities and commodities recently. A resolution that alleviates costs for U.S. businesses could act as a positive force for risk assets, including cryptocurrencies.

In another development, the Federal Reserve’s decision to maintain current interest rates was anticipated, though market participants remain unsure about the timing of potential rate cuts.

The CME FedWatch Tool indicates a 55% likelihood of a decrease to the 4.00%-4.25% range by July, even as traders anticipate up to 100 basis points in cuts before the year concludes.

According to Semir Gabeljic, CEO of Pythagoras Investments, “Bitcoin is steadily approaching $100k, aided by the Fed’s consistent stance and increasing discussions about upcoming rate cuts.” He noted that the pressure from the current administration on the Fed chair leaves the door open for any outcome—making uncertainty the prevailing theme.

Some analysts caution that policymakers may be heading into a stagflation scenario, characterized by high inflation coupled with stagnant economic growth and rising unemployment, which is detrimental to overall economic health.

Gabe Selby, head of research at CF Benchmarks, stated that the Federal Reserve is grappling with complex policy challenges that could jeopardize its dual mandate.

Selby noted that the transmission of rising tariff costs to consumers indicates inflation may escalate over the next six months, while labor market metrics reveal a declining employment outlook.

Despite this, CF Benchmarks expects around 100 basis points in rate cuts by the end of the year. However, he warned that delaying action could lead to greater economic distress.

“In this unpredictable macroeconomic climate, Bitcoin has emerged as a significant advantage,” Selby remarked, highlighting the substantial inflows into U.S. spot Bitcoin ETFs, including BlackRock’s offering, which has amassed $4.3 billion over the past month.

Jupiter Zheng, a partner at HashKey Capital, remarked that Bitcoin’s recent price movements reflect a broader structural transformation.

“Bitcoin’s ascent underscores its role as a safeguard against economic and geopolitical uncertainties,” Zheng commented. “Investors are increasingly viewing cryptocurrencies as essential components of resilient investment portfolios.”