Historically dubious of cryptocurrencies, the US Federal Reserve could be starting to show early signs of becoming more receptive to Bitcoin and digital assets.

Recent remarks from key Fed officials point to a change in tone that would indicate a more open attitude regarding crypto inclusion, claims FOX Business writer Eleanor Terrett.

Fed Governors Recognize Growing Part Played By Crypto

Terrett highlighted comments given at the Wisconsin Bankers Association Bank Executive Conference on February 7 by Federal Reserve Governors Michelle Bowman and Christopher Waller.

Both officials talked about the increasing importance of digital assets, a clear divergence from the usually wary attitude of the central bank.

Waller, who has previously been skeptical of cryptocurrencies, noted their growing importance in the financial sector. Bowman reflected similar ideas, implying that financial institutions ought to get ready for blockchain technology to develop.

Although neither totally supports Bitcoin, their eagerness to participate in the dialogue signals a change from earlier dismissals of cryptocurrencies.

🚨NEW: The narrative around #crypto is changing at the @federalreserve. In a pair of speeches on Friday, Republican Fed Governors Michelle Bowman and Christopher Waller both signaled a more open stance toward digital assets and their future in the financial system.

Their words…

— Eleanor Terrett (@EleanorTerrett) February 11, 2025

Journalist Notes Potential Policy Development

Terrett pointed out that although these remarks don’t prove a complete policy change, they show the Fed’s growing consciousness of the influence of cryptocurrencies.

Long given top priority by the US central bank is financial stability; worries about digital assets upsetting the economy have resulted in a cautious legislative response.

But as Bitcoin adoption rises—among institutional as well as retail investors—the Fed might be changing its posture. The fact that top authorities are now candidly talking about the asset class implies that central banking circles are giving bitcoin more importance.

Political Influence And Trump’s Crypto-Friendly Stance

Terrett also talked about how current events in politics might be affecting this shift in opinion. US President Donald Trump has openly backed an America that is friendly to crypto by announcing policies that encourage innovation in the industry.

Still, the Fed hasn’t said what laws will change about Bitcoin or financial instruments that use cryptography. The shift remains one of sentiment rather than action—for now.

What’s Next For Bitcoin And The Fed?

Terrett’s analysis indicates that crypto is no longer being overlooked at the highest echelons of financial policy, even when the Federal Reserve isn’t rushing to embrace Bitcoin. Should digital assets keep their increasing trend, the Fed might have little option except to adjust.

Right now, fans of Bitcoin can consider this as a small yet significant advancement. Though it’s yet unknown whether it results in specific legislative changes, crypto’s increasing presence in economic discussions is indisputable.

Featured image from DALL-E, chart from TradingView

An analytics firm suggested that Bitcoin might be heading to another bull market as the hype around meme coins starts to fade and the crypto community regains its interest in the flagship crypto and other top Layer-1 protocols.

Santiment acknowledged that the crypto community’s shift to Bitcoin could indicate market maturity, creating renewed optimism in the broader digital assets market.

Shifting Attention To Bitcoin

Data giant Santiment observed that the cryptocurrency sector has once again turned its attention to Bitcoin in the last few weeks as the meme coin frenzies waned.

“The crypto community has largely shifted their attention to Bitcoin and other Layer 1 assets like Ethereum, Solana, Toncoin, and Cardano,” Santiment said in a post.

The analytics firms noted that social discussions on Bitcoin and other Layer-1 protocols are on the rise, overtaking discussions on meme coins, which have been the talk of the crypto space for some time.

😀 The crypto community has largely shifted their attention to Bitcoin and other Layer 1 assets like Ethereum, Solana, Toncoin, and Cardano. Collectively, the top Layer 1 assets are getting 44.2% of discussions among specific coins. Meanwhile, top meme coins like Dogecoin, Shiba… pic.twitter.com/PpBjD9vSi4

— Santiment (@santimentfeed) February 10, 2025

“Collectively, the top Layer 1 assets are getting 44% of discussions among specific coins. Meanwhile, top meme coins like Dogecoin, Shiba Inu, and Pepe are being discussed less and less across social media,” Santiment said.

The data giant attributed this shift to the “recent volatility, and speculative altcoin price dominance falling behind.”

More Stable, Sustainable Market

Santiment explained that investors’ shift of attention from meme coins to Bitcoin and Layer 1 only indicates “a more stable and sustainable market environment.”

“Meme coins tend to attract speculative enthusiasm, often driven by hype, viral trends, and a gambling mindset rather than fundamental value. When these assets dominate discussions, it typically signals a phase of excess greed, where traders chase rapid, short-term gains without considering long-term viability,” the analytics firm said.

Sanitment called Bitcoin and other Layer-1 protocols the “foundational infrastructure of the crypto space,” believing that the crypto community’s increased attention to these assets often reflects a “more mature and informed approach” by the crypto community.

The data giant added that it also means that the community wants to prioritize “security, innovation, and real-world adoption.”

“Layer 1 blockchains support smart contracts, decentralized applications, and network scalability—key drivers of long-term growth in the industry,” the analytics firm said.

Healthier Market Cycle

The analytics firms suggested that the investors’ regained attention towards Bitcoin and away from meme coin proves that the crypto community is more inclined to sustainability.

“When traders pivot back to assets with strong utility and established market positions, it suggests a healthier market cycle. This shift encourages a more balanced ecosystem, reducing the risk of unsustainable price surges and crashes fueled purely by speculative mania,” Santiment said.

As of this writing, Bitcoin is being traded at $97,825 per coin, up 0.2% in the last 24 hours. Its total market capitalization is nearly $2 trillion.

Featured image from Avira, chart from TradingView

The price of Bitcoin is gradually retaining its upward trend as the flagship asset eyes the $100,000 pivotal mark after a slight rebound on Monday. During the waning price performances over the past few days, recent data shows that BTC’s funding rates have persistently maintained a bullish sentiment.

BTC’s Funding Rates Defies Market Dip

Bitcoin has faced bearish pressure over the past few days, causing its price to retest the $94,000 range. Despite the notable price drop, funding rates across several crypto exchanges remain positive. 

Alphratcal, an advanced investment and data analytics firm reported the development in an X post. Data from the platform shows that Bitcoin’s aggregated funding rates have sustained a bullish trend among 11 crypto exchanges, signaling that traders are maintaining an optimistic sentiment. 

Simply put, more traders are placing leveraged long-term bets on BTC than short-term bets as they anticipate a price recovery. This implies that long-term investors are covering the funding fees, which are assessed every 8 hours, while short-term investors are being paid.

An increase in long-term positions showcases investors’ robust confidence in BTC’s long-term potential. Should this positive trend continue, the development might spur renewed momentum in the upcoming days, allowing the asset to reclaim key resistance levels.

According to Alphractal, Bitfinex (BTC-USDT) has the highest funding rate at the moment, while BitMEX (XBTUSD) and OKX (BTC-USD-SWAP) are the only two crypto exchanges with negative funding rates. The gap suggests that traders have different opinions about the market across different platforms.

Addressing what the development could mean for Bitcoin, Alphractal stated that if the funding rate stays positive, it can be a sign of overconfidence and the possibility of liquidation should BTC’s price continue to fall. However, it can indicate a more bearish market for BTC where short positions dominate if the rate turns negative across the board.

In the meantime, Alphractal highlighted that most exchanges still display positive funding rates as they maintain an overall average above zero. Specifically, maintaining an overall average above zero suggests that the market is not yet generally bearish even though it has declined.

Coinbase Premium Index Turns Green

Another metric that has turned positive amid waning price movements is the Coinbase Premium Index. A rise in the metric demonstrates renewed confidence and demand in BTC among US institutional investors.

Related Reading: Bitcoin Coinbase Premium Index Flips Positive As Market Euphoria Increases, A Rally Imminent?

Since the index turned positive, it has impacted BTC positively, causing a rebound from the $94,000 mark to the $97,000 level. However, the flagship asset must recover above $100,000 in order to establish prolonged upward momentum.

At the time of writing, Bitcoin has fallen by over 2%, bringing its price to the $97,400 level. With investors’ sentiment rising as evidenced by a nearly 84% increase, the drop may shift toward the upside shortly.

Featured image from Unsplash, chart from Tradingview.com