Bitcoin Surges to $105,000 as Fed Signals Easing

Bitcoin almost reached the $105,000 mark amid a significant change in rhetoric from the U.S. Federal Reserve. For the first time since 2021, the Fed's tone has become more neutral and soft, which could create favorable conditions for further cryptocurrency growth.Current situation analysisTrader and analyst Skew notes that Bitcoin has almost reached the $105,000 level thanks to news of improved trade relations between the U.S. and China. “Markets want to see the realization of Trump’s comments on the way forward on trade between the U.S. and China. Transportation data is already showing insiders are on board, so container volume briefly rose again,” he said.According to analyst Rekt Capital, the progress of the current Bitcoin bull market is estimated at 85.5%. “The progress will accelerate with a parabolic movement,” the expert emphasizes.1-month chart of BTC/USD. Source: Rekt CapitalChange in the Fed’s rhetoric as a key factorA graph provided by analytical resource Ecoinometrics shows a significant change in the Fed’s communications. The Fed Communications Index at the May 7 press conference recorded a neutral-to-blue tone for the first time since 2021. Fed Chairman Jerome Powell highlighted several risks to the U.S. economy, signaling a shift in focus from fighting inflation to preventing an economic slowdown.The Fed is shifting to neutral-soft rhetoric for the first time since 2021, creating a favorable backdrop for cryptocurrencies. Source: EcoinometricsEcoinometrics emphasizes, “Powell is no longer strongly emphasizing inflation; he is talking about downside risks.” This fundamental change creates a macroeconomic backdrop that favors risk assets.Technical Picture and Traders’ SentimentDespite the positive dynamics, trader Roman recommends investors with long positions from the $80,000 level consider taking profits. “There is a lot of over-optimism in the market, and we are approaching a significant resistance level. Profit-taking has never hurt anyone,” he notes.Keith Alan, co-founder of Material Indicators, highlights the importance of a test of support after crossing $100,000. “Holding above $100,000 without declines below that mark would be an extremely positive signal. A decline below opens the door for a test of support at $98,000,” he explained.Historical Context of CorrectionsTrader Daan Crypto Trades mentions that corrections are a natural part of a bull market. “It can look scary when you’re in it, but usually the situation looks worse than it is. And if history has taught us anything, recoveries always happen pretty quickly, especially during a major bull trend.”Bitcoin's major corrections in the current cycle. Source: Daan Crypto TradesBitcoin’s major corrections in the current cycle are clearly visible on the chart:Banking crisis and USDC problems (17 days) – 22.75% drop in early 2023.Correction during the recovery period after the 2023 bear market – two phases of 64 and 61 days with a drop of about 21.67%.Selloff after ETF launch (12 days) – short-term drop of 21.43% in mid-2023.Extended correction after ETF mania (117 days) – longest period of 27.51% decline at the turn of 2023–2024.Mt. Gox distributions (17 days) – down 29.86% at the start of 2024.Collapse of Yen Carry-Trade strategy (7 days) – short but sharp drop in spring–summer 2024.Correction after Trump’s inauguration and his imposition of tariffs (77 days) – deepest drop of 32.08% in the recent 2025 period.The longest correction occurred after the period of hype surrounding the launch of the Bitcoin ETF and lasted 117 days. The deepest decline was the correction after the presidential inauguration and the introduction of tariffs, when Bitcoin lost 32.08% of its value in 77 days.Daan’s analysis confirms his main thesis: corrections are always accompanied by certain narratives, but usually the situation looks worse than it really is, and recoveries are quite fast, especially during a significant bullish trend.Kraken: Best crypto exchange for security & reliabilityBuy, sell, and trade 400+ cryptocurrencies with industry-leading securitySpot, Futures & Margin trading – leverage up to 5x for advanced tradersEarn rewards with staking on top cryptocurrencies24/7 customer support and high liquidity for fast tradesRegulated in the US with strong compliance and security measures13+ million users worldwideGet Started on Kraken