Cryptocurrencies have bounced back quickly from recent declines as the Fed’s comments restored risk appetite in global markets and drew buyers back into the cryptocurrency space. In 24 hours, the overall market capitalization increased 7.7% to $2.55 trillion. While Bitcoin showed a similar growth pattern, Ethereum and Solana showed stronger gains, with increases of around 10%.
Bitcoin held on for more than 61.8% of the rally, hovering around $60,300, indicating resilience in the face of recent volatility. If the current positive sentiment continues, Bitcoin’s next major objective could be a return to previous highs above $73,000.
Ethereum price briefly touched the 50-day moving average before reversing higher, confirming that the recent correction was a temporary setback rather than a trend reversal. Solana, which experienced a significant drop of more than 22% between March 18 and 20, falling from $210 to $162, has also recovered and is currently trading around $190.
Technical indicators for all three cryptocurrencies suggest a bullish trend with a strong recovery following the recent decline. Market sentiment rose on weakness from the Federal Reserve and other central banks, sparking aggressive buying.
In other news
S&P Global Ratings has released its ninth ‘stability assessment’ of major stablecoins, rating USDC, USDP and GUSD as ‘strong’, while Mountain Protocol’s USDM received an ‘adequate’ rating. USDT, DAI, and FDUSD are rated ‘Restrictive’. Four stablecoins have been downgraded due to transparency and risk concerns.
BlackRock, the largest asset management firm, has applied to launch a USD institutional digital liquidity fund, creating the first fund with tokenized assets.
The SEC is reportedly considering the designation. Ethereum Fortune cited an unnamed U.S. company as being subpoenaed for the investigation.
Bloomberg reports that the chances of a spot Ethereum ETF being approved in the U.S. in May are decreasing as regulators show hesitation.
Since March 12, the Solana ecosystem has run 33 pre-sale fundraising campaigns for the token launch, raising a total of 796,000 SOL (approximately $139 million). The biggest pre-sale was the Book of Meme (BOME) meme token, which has surged nearly 40,000% in value since launch.
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