Cryptocurrency markets advanced Monday as traders shifted focus from geopolitical tensions to institutional developments ahead of the Federal Open Market Committee’s upcoming meeting.
Bitcoin rose 3.1% in 24 hours, reaching $108,600, approaching its all-time high. The broader crypto market also gained, with the CoinDesk 20 index climbing 4.3%, led by strong performances from Chainlink and other major tokens.
Traditional markets showed renewed risk appetite after last week’s Middle East missile incidents. The S&P 500 and Nasdaq increased 0.9% and 1.4%, respectively, while gold dropped 1.5%. Crypto-related stocks followed suit, with Coinbase and Circle up 7.7% and 13%. Bitcoin miners Bitdeer and Hut 8 gained nearly 7% and 5.6%. In contrast, Strategy declined slightly, while Metaplanet surged 25% on Japan’s stock exchange.
Key institutional news drove the crypto rally further. JPMorgan filed a trademark for a digital asset product offering trading, exchange, payment, and issuance services. Asset manager Purpose announced plans to launch a spot XRP exchange-traded fund (ETF) in Canada, boosting momentum for altcoin-focused funds.
Altcoin Outlook
Nansen analyst Nicolai Søndergaard tempered expectations for a sustained altcoin rally. He noted Bitcoin still leads the market, with altcoins often reacting to Bitcoin’s movements. While some altcoins and DeFi tokens have seen short bursts of strength, most remain weakened over time.
Bitcoin’s recovery from Friday’s lows suggests improving market conditions. Bitfinex analysts highlighted that recent market behavior resembles local bottom setups, indicating selling pressure may be easing if Bitcoin holds the $102,000-$103,000 range.
Focus on the Federal Reserve
The Federal Reserve and Chair Jerome Powell’s upcoming announcements are in investors’ sights. The market widely expects rate hikes to pause through July. However, Powell’s tone during the press conference is expected to influence volatility across commodities and risk assets more than the rate decision itself, according to digital asset analytics firm Swissblock.