In a surge of bullish momentum that has captivated cryptocurrency traders worldwide, Bitcoin (BTC) briefly surpassed the $116,000 mark on Monday, while Ethereum (ETH) climbed above $4,240, both achieving impressive two-week highs. This positive price action comes amid growing optimism in the crypto markets, fueled by the upcoming Federal Open Market Committee (FOMC) meetings starting tomorrow and the establishment of President Trump's Crypto Advisory Board. According to Santiment, these developments are injecting fresh enthusiasm into trading circles, potentially setting the stage for further gains as investors position themselves for policy shifts that could favor digital assets.

Bullish Monday Sets the Tone for Crypto Trading Opportunities

The cryptocurrency market experienced a notable uptick on this bullish Monday, with Bitcoin eclipsing $116K around midday trading hours, marking a significant rebound from recent consolidation patterns. This price movement represents a roughly 5-7% intraday gain, depending on the exact timestamp, and aligns with increased trading volumes across major exchanges. Ethereum, not to be outdone, jumped above $4.24K, showcasing resilience in the altcoin sector. Traders are closely monitoring these levels as potential support zones, with BTC's climb above $116,000 testing key resistance points that could open doors to higher targets like $120,000 if sustained. The positive momentum is particularly evident in spot trading pairs such as BTC/USDT and ETH/USDT, where buy orders have dominated, reflecting heightened investor confidence ahead of macroeconomic events.

Impact of FOMC Meetings on Market Sentiment

As the FOMC meetings kick off tomorrow, market participants are bracing for insights into interest rate decisions that could influence liquidity in both traditional and crypto markets. Historically, dovish signals from the Federal Reserve have correlated with crypto rallies, and this anticipation is amplifying the current bullish sentiment. Coupled with the news of Trump's Crypto Advisory Board, which aims to foster innovation in blockchain and digital currencies, there's a palpable sense of optimism among traders. On-chain metrics, including rising active addresses and transaction volumes for BTC and ETH, support this narrative, suggesting that institutional flows are picking up. For traders, this presents opportunities in leveraged positions, with potential entry points around $110,000 for BTC longs if pullbacks occur, while ETH could see buying interest near $4,000 support. However, volatility remains a key risk, especially with external factors like geopolitical tensions potentially swaying market directions.

Looking deeper into trading strategies, the recent highs have implications for various pairs beyond just USD denominations. For instance, BTC/ETH ratios are stabilizing, indicating Ethereum's relative strength, which could appeal to arbitrage traders. Volume data from the past 24 hours shows a spike in ETH futures contracts, hinting at speculative bets on further upside. Santiment highlights that this momentum is not isolated, as broader crypto indices are also trending positively, with total market capitalization approaching new milestones. Savvy traders might consider diversification into AI-related tokens, given the intersection of blockchain and artificial intelligence advancements, which could benefit from advisory board policies. Overall, this bullish setup encourages a cautious yet opportunistic approach, focusing on risk management with stop-loss orders below recent lows to capitalize on the prevailing uptrend.

Broader Market Implications and Trading Insights

Beyond the immediate price action, the establishment of Trump's Crypto Advisory Board is seen as a game-changer for regulatory clarity in the U.S., potentially boosting institutional adoption of cryptocurrencies like Bitcoin and Ethereum. This could lead to increased ETF inflows and higher trading volumes in the coming weeks. From a technical analysis perspective, BTC's chart shows a breakout from a descending channel, with moving averages converging bullishly. Ethereum, meanwhile, is approaching overbought territory on the RSI, suggesting a possible short-term correction before resuming upward momentum. Traders should watch for correlations with stock market indices, as positive crypto sentiment often spills over into tech-heavy equities, creating cross-market trading opportunities. In summary, this Monday's rally underscores the dynamic nature of crypto trading, where events like FOMC decisions and policy boards can drive substantial price swings, offering both risks and rewards for informed participants.