Bitcoin surges past $105K amid Fed's hawkish stance

Bitcoin (CRYPTO:BTC) has successfully reclaimed the $105,000 mark despite the Federal Reserve's recent hawkish comments regarding interest rates.

The cryptocurrency's resilience has caught the attention of analysts, particularly as it does not appear to be closely following the performance of technology stocks.

According to Santiment, a cryptocurrency analytics firm, this divergence could be viewed as a positive indicator for Bitcoin's market potential.

"The most historic bull cycles in crypto have come when there is minimal reliance on world stock markets," Santiment noted, emphasising the significance of this trend.

In a recent statement, Federal Reserve Chairman Jerome Powell acknowledged that inflation remains "somehow elevated" but indicated that rate cuts could occur before reaching the 2% inflation target.

Powell also mentioned that banks are "perfectly able" to serve cryptocurrency customers if they effectively manage associated risks, a comment that may have contributed to Bitcoin's price surge.

Market observers are noting a growing bullish sentiment surrounding Bitcoin, with some analysts projecting potential price movements above $110,000 in the near future.

The current market dynamics suggest that Bitcoin could continue to thrive despite external pressures from traditional financial systems.

As Bitcoin continues to maintain its position above $105,000, traders and investors are closely monitoring macroeconomic factors that could influence its trajectory.

At the time of reporting, the Bitcoin (BTC) price was $105,255.