Crypto’s market capitalization rebounded above 4T after the Fed rate cut signal. The Bitcoin Reserve Proposal will increase confidence in digital assets. Ethereum and ChainLink lead Altcoin Rally with double-digit profits.
The cryptocurrency market has achieved an astonishing rebound, bringing back the $4.01 trillion level, with its total market capitalization rising by more than 5% in the last 24 hours.
Ethereum (ETH) has emerged as a standout performer among the top 10 digital assets by market capitalization, up 13.12%.
ChainLink (Link) has attracted attention with a 10.37% rise, indicating a strong desire for investors for Altcoins as momentum develops across the sector.
Fed Shift will be Optimistically Fueled
One of the biggest drivers behind the Surge came from comments by US Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium.
Powell has shown that the economic situation could justify interest cuts in September, turning Hawkish over the market for months.
https://www.youtube.com/watch?v=lyd4uyb9axo
Traders quickly interpreted this as a Dub pivot, sparking a new appetite for risky assets.
Bitcoin (BTC) set the tone for the broader crypto market, surged from a local low of $111,658 within minutes of Powell’s remarks, surged beyond $116,000.
Low interest rates generally encourage investors to transfer capital to higher earning assets, and cryptocurrencies are often the major beneficiaries of such flows.
The dollar was weakened by Powell’s comments, increasing bullish sentiment across the digital market.
The background to this macro provides an ideal setup where both Bitcoin and altcoin gather in tandem, firmly lifting the total market capitalization to the $4 trillion range.
Bitcoin reserves story builds
Another important factor is the growing momentum regarding the government’s ideas that hold Bitcoin as a strategic preparation.
More recently, the Philippines has introduced a bill to create a Bitcoin Reserve in the United States following a similar proposal.
This development strengthened the narrative of Bitcoin’s institutional role in global finance and gave investors another reason to build exposure.
Market observers note that even before such proposals become policy, they still carry symbolic weight.
They show that Bitcoin is increasingly seen as part of a broader macroeconomic conversation, not just speculative assets.
This story helped support the recovery of Bitcoin prices, while supporting altcoin gatherings tied to themes of sovereignty and institutionality.
Altcoins are in the spotlight
Much of the excitement comes from the Altcoin space while Bitcoin rebound grabs the headline.
The Altcoin Season Index rose sharply, reflecting the turnover of capital from Bitcoin to high beta assets.
ETH has surpassed major resistance levels, but things like Link have recorded impressive profits.
Solana (Sol) and Binance Coin (BNB) have also announced strong profits. Traders are positioned for extended rallies as momentum continues.
This rotation shows investors willingness to take on more risks. This is a common trend seen in bullish stages of the market.
Derivatives suggest cautious leverage, but spot purchases remain strong.
The move to Altcoins highlights the growing confidence that the rally is not limited to Bitcoin, but is part of a broader recovery story.
Crypto Market Outlook
The sharp recovery in the crypto market underscores how digital digital assets remain in global economic cues.
Powell’s Devish shift, coupled with the rise in momentum behind Bitcoin’s reserve narrative, created the perfect storm for a quick surge.
The consistency of the stock market, particularly the NASDAQ-100, has further amplified the movement as the correlation between crypto and traditional risk assets has been enhanced.
For now, repayments of market capitalizations above $4 trillion provide a resilient signal. With Altcoins leading, investors are closely monitoring to see if meetings expand or face resistance at a higher level.
But much will depend on whether the Fed will follow the actual interest rate cuts in September, and whether the Bitcoin Reserve debate will gain traction in the coming weeks.
