Bitcoin has rebounded to nearly $108,000, recovering from a previous dip influenced by geopolitical tensions in the Middle East. This resurgence is attributed to dovish comments from Federal Reserve Chair Jerome Powell regarding potential rate cuts, which have shifted investor sentiment towards a more risk-on approach. Institutional and retail investors are increasingly rotating into digital assets, indicating a growing confidence in the cryptocurrency market. Bitcoin's recent trading performance shows a 1.6% increase in the last 24 hours, reflecting a broader bullish trend in the crypto space.

The overall cryptocurrency market is experiencing a significant uptick, with Bitcoin reclaiming its 50-day moving average, suggesting potential for further momentum if positive sentiment persists. Other cryptocurrencies like Ether are also seeing gains, with retail investors reportedly increasing their exposure to digital assets amid a weakening dollar and rising global uncertainty. Data indicates that a substantial majority of current crypto holders plan to increase their investments in 2025, highlighting a robust underlying demand for cryptocurrencies.