### Crypto Market Surge Amid Positive Developments
Crypto markets experienced an upward push on Monday, as traders moved their focus away from geopolitical tensions towards promising cryptocurrency-related institutional developments, particularly with the Federal Open Market Committee (FOMC) meeting approaching. This shift in sentiment has led to encouraging price movements across major cryptocurrencies.
#### Bitcoin’s Rally
Bitcoin rose by 3.1% over a 24-hour span, now trading at $108,600—just a stones’ throw from its all-time high, marking renewed investor interest. This bullish momentum wasn’t isolated to Bitcoin; the CoinDesk 20 index, which tracks the largest cryptocurrencies—excluding stablecoins, meme coins, and exchange tokens—increased by 4.3%. Key players such as Chainlink and others saw impressive gains between 6-7%, with the vast majority of other altcoins also enjoying boosts of at least 3%.
#### Traditional Markets Reflect Risk Appetite
Notably, traditional financial markets also reacted positively, as risk appetite returned following recent geopolitical jitters triggered by events in the Middle East. The S&P 500 and Nasdaq indexes increased by 0.9% and 1.4%, respectively, while safe-haven assets, like gold, saw a decline of 1.5%. This broader market optimism signals a favorable environment for crypto investments.
#### Stocks Linked to Crypto Industry Flourish
Several cryptocurrency-related stocks have benefited from the upbeat market sentiment. Coinbase (COIN) and Circle (CRCL) noted gains of 7.7% and 13%, respectively. In the bitcoin mining sector, firms like Bitdeer (BTDR) and Hut 8 (HUT) saw their stocks rise 6.9% and 5.6%. Interestingly, MicroStrategy (MSTR), a key player in the bitcoin treasury space, faced slight losses of nearly 0.2%, contrasting sharply with the 25% surge of its competitor, Metaplanet, on the Japanese stock market.
#### Institutional Developments Taking Shape
Positive news from institutional channels has further fueled today’s rally. Notably, JPMorgan has filed a trademark application aimed at launching digital asset services—including trading, exchange, payment, and issuance services. On another front, Purpose, an asset manager, is poised to launch a spot XRP exchange-traded fund (ETF) in Canada, indicating increasing momentum in the altcoin ETF market.
### When Will We See Altcoin Season?
The altcoin market’s recent outperformance sparks hope among traders for an impeding “alt season.” However, research analyst Nicolai Søndergaard from Nansen tempered expectations. He emphasized that Bitcoin continues to lead market movements, often acting as a trigger for altcoins’ performance.
“BTC has mostly served as a trigger for altcoins,” Søndergaard noted. “When BTC breaks an all-time high (ATH), the market often responds positively.” While some altcoins are currently gaining, Søndergaard stressed that the overarching trend shows many altcoins have faced sustained decline.
#### Bitcoin’s Resilience Amid Selling Pressure
Bitcoin’s strong comeback from Friday’s low hints at a potential market rebound. Analysts from Bitfinex pointed out a decline in the Fear and Greed Index, which briefly entered the “Fear” territory last week alongside a spike in selling pressure. They observed behaviors suggesting that the market may currently be at a local bottom, frequently seen before price recoveries. According to the analysts, if Bitcoin can sustain levels between $102,000 and $103,000, it may indicate that selling pressures are stabilizing.
### Focus on the Federal Reserve
From a macroeconomic perspective, the spotlight now shifts to the Federal Reserve and Chair Jerome Powell’s upcoming press conference. Market participants largely anticipate that the Fed will maintain the benchmark interest rates steady both this week and in July. However, the emphasis will be on Powell’s commentary regarding future monetary policy adjustments amid ongoing inflation and labor market pressures.
“Powell’s tone, rather than the actual rate decision, is likely to drive significant market volatility,” cautioned digital asset analytics firm Swissblock in a Monday note. Traders can expect whiplash movements across various commodities, yields, and risk assets based on Powell’s insights.
