Crypto Markets Bounce Back as Traders Eye Fed Meeting
After a rocky week dominated by geopolitical tensions, crypto markets clawed their way up on Monday. Bitcoin, along with most major altcoins, saw solid gains—perhaps a sign that traders are shifting focus to institutional developments and this week’s Federal Reserve meeting.
Bitcoin climbed just over 3% in the past 24 hours, hovering around $108,600. That puts it within striking distance of its all-time high. But it wasn’t the only one moving. The CoinDesk 20, which tracks top cryptocurrencies (minus stablecoins and memecoins), jumped 4.3%. XRP and Chainlink led the charge with 6-7% gains, while nearly everything else in the index rose at least 3%.
Risk Appetite Returns—Even Outside Crypto
Traditional markets also perked up after last week’s jitters over Middle East tensions. The S&P 500 and Nasdaq gained 0.9% and 1.4%, respectively, while gold—usually a safe haven—dropped 1.5%.
Crypto-related stocks rode the wave too. Coinbase and Circle closed up 7.7% and 13%, while Bitcoin miners like Bitdeer and Hut 8 saw gains around 6%. Oddly, MicroStrategy—usually a market darling—dipped slightly, while Japan’s Metaplanet surged 25%.
A couple of news items likely fueled the rally. JPMorgan filed a trademark for digital asset services, hinting at deeper crypto ambitions. Meanwhile, Canadian asset manager Purpose is prepping a spot XRP ETF, adding to the growing buzz around altcoin-focused funds.
Is an Altcoin Season Coming? Maybe Not Yet
Some traders might see today’s altcoin action and think a broader alt season is brewing. But Nicolai Søndergaard, a research analyst at Nansen, isn’t convinced.
“Bitcoin’s still driving the market,” he said. When BTC rallies, alts often follow—but that doesn’t mean they’re leading. Sure, some sectors like DeFi have had short bursts, but most altcoins “have been bleeding for some time,” Søndergaard noted.
Bitcoin’s rebound from Friday’s lows could be a good sign. Bitfinex analysts pointed out that last week’s Fear and Greed Index dipped into “Fear” territory, while aggressive selling hit Bitcoin’s Net Taker Volume. Historically, that kind of setup sometimes marks a local bottom. If BTC holds above $102,000-$103,000, they say, the market might be gearing up for a real recovery.
All Eyes on Powell
The bigger question now is what the Fed does—or, more accurately, what Jerome Powell says. Nobody expects a rate change this week, but traders will dissect every word from Powell’s press conference for hints about inflation and jobs.
“Powell’s tone, not the decision itself, will move markets,” Swissblock warned. Volatility could hit everything from commodities to crypto.
For now, though, crypto’s catching its breath. Whether the momentum holds depends on a mix of Fed signals, institutional moves, and whether Bitcoin can keep its footing.
