CDS Crypto News Crypto Market Rebounds: SOL and AVAX Surge, Altcoins Rally Amid Positive Momentum
Crypto News

Crypto Market Rebounds: SOL and AVAX Surge, Altcoins Rally Amid Positive Momentum

Altcoins' sustained positive trend in the last six days fuels optimism, potentially paving the way for Bitcoin to challenge the $46,000 mark, according to an analyst.

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Crypto Market Rebounds SOL and AVAX Surge, Altcoins Rally Amid Positive Momentum

Crypto News- The crypto market has rebounded strongly, surging from $1.61 trillion to $1.74 trillion in just one week. Altcoins such as SOL (Solana), AVAX (Avalanche), and ICP (Internet Computer) are leading this recovery.

Velo Data reports that SOL has experienced a notable 27% increase, reaching $103. This impressive rally has almost erased the losses observed after the debut of spot-based Bitcoin ETFs on January 11. The surge in SOL’s value is attributed to heightened user interest in the Solana-based trading aggregator, Jupiter, which recorded volumes exceeding $500 million on Monday, surpassing activities on the renowned decentralized exchange, Uniswap.

Crypto Market Rebounds: SOL and AVAX Surge, Altcoins Rally Amid Positive Momentum

AVAX, the native token of Avalanche, Ethereum’s competitor, has also shown a remarkable 25% rally within the week. Other tokens like ICP, NEAR, DOT, and XMR have witnessed gains ranging from 13% to 22%.

Bitcoin (BTC), the largest cryptocurrency, has gained nearly 10%, trading above the widely tracked 50-day simple moving average at $42,870. Crossovers above and below this level are considered indicators of bullish or bearish momentum.

Ether (ETH), Ethereum’s native token, has seen a modest 0.6% rise. Market makers trading against the price move may be contributing to its underperformance, hindering significant upside price volatility.

SOL and AVAX Lead the Charge, Altcoins Rally Amidst Positive Momentum

Alex Kuptsikevich, a senior market analyst at FxPro, expressed optimism, suggesting that the positive performance of altcoins in the past six days could set up Bitcoin for a test of $46,000. However, he cautioned that the outperformance of altcoins might be short-lived, emphasizing that sustained demand for smaller altcoins usually occurs after a prolonged bull market.

The focus now shifts to the U.S. Federal Reserve’s upcoming rate decision. Scheduled for Wednesday at 19:00 UTC, Chairman Jerome Powell will later elaborate on the decision and policy path in a press conference. The market is closely watching for any dovish shift, with expectations of a potential boost in risk appetite and increased capital flow into Bitcoin and related ETFs.

Tagus Capital, in its daily newsletter, highlights the market’s sensitivity to the Fed’s tone and suggests that a dovish policy easing could redirect more capital into the crypto market.

Crypto Market Rebounds: SOL and AVAX Surge, Altcoins Rally Amid Positive Momentum

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