Crypto Rebounds from Pullback, Boosted by Fed’s Comments
Cryptocurrencies swiftly rebounded from their recent pullback as the Federal Reserve’s comments restored risk appetite in global markets, attracting buyers back to the crypto space. Within 24 hours, the total market capitalization surged by 7.7% to $2.55 trillion. While Bitcoin showed a similar growth pattern, Ethereum and Solana saw even stronger gains, adding around 10%.
Bitcoin maintained levels above 61.8% of its rally, staying around $60.3K, indicating resilience in the face of recent volatility. If the current positive sentiment persists, the next major target for Bitcoin could be a return to its previous highs above $73K.
Ethereum’s price reversed upwards after briefly touching the 50-day moving average, confirming that the recent correction was a temporary setback rather than a trend reversal. Solana, which experienced a more significant dip of over 22% between March 18th and 20th, falling from $210 to $162, has also recovered, currently trading around $190.
Technical indicators for all three cryptocurrencies suggest a bullish trend, with a strong recovery following the recent pullback. The market sentiment was buoyed by weakness in the Fed and other central banks, prompting active buying.
In Other News
S&P Global Ratings issued 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 were rated “limited.” Four stablecoins had their ratings downgraded due to transparency and risk-related concerns.
BlackRock, the largest asset management company, filed to launch a USD Institutional Digital Liquidity Fund, marking its first fund with tokenized assets.
The SEC is reportedly looking into designating Ethereum as a security, according to Fortune, citing unnamed US companies subpoenaed for the investigation.
Bloomberg reported that the likelihood of spot Ethereum ETFs being approved in the US in May is diminishing, as regulators appear hesitant.
Since March 12th, the Solana ecosystem has hosted 33 pre-sale fundraising campaigns for token launches, raising a total of 796,000 SOL (~$139 million). The largest pre-sale was for the Book of Meme (BOME) meme token, which has surged in value by approximately 40,000% since its launch.
Featured Image: Freepik @ jcomp
