The cryptocurrency market saw broad gains on Wednesday, with Bitcoin and top altcoins like Stacks (STX), Flare (FLR), JasmyCoin (JASMY), and Dogecoin (DOGE) rising amid renewed investor optimism. The surge comes ahead of crucial U.S.-China trade talks and the Federal Reserve’s interest rate decision, both of which could shape global economic sentiment in the coming weeks.
Bitcoin Hits Multi-Month High
Bitcoin (BTC) climbed nearly 3%, reaching $97,000, its highest price level since February. With a market capitalization now exceeding $1.92 trillion, Bitcoin led the bullish momentum across digital assets, lifting sentiment in the broader altcoin market.
Altcoins Ride the Wave
Several notable altcoins posted significant gains:
- Stacks (STX) jumped 14.83%, leading the pack with strong investor demand.
- Flare (FLR) rose by 5.87%.
- Dogecoin (DOGE) gained 3.19%, continuing its steady upward trend.
- JasmyCoin (JASMY) also recorded a notable rally.
These moves came as macroeconomic tailwinds and geopolitical factors aligned to create a more favorable outlook for risk assets.
Geopolitical Optimism Drives Market Confidence
The key catalyst fueling the rally is the upcoming meeting between senior U.S. and Chinese officials, scheduled for this weekend in Switzerland. After a round of heavy tariffs in April, the two nations are now looking to de-escalate tensions. According to the Wall Street Journal, the U.S. may consider reducing tariffs on Chinese goods from 145% to 50% if China takes further action to limit the export of chemicals used in fentanyl production.
Market participants see this as a step toward easing global inflation pressures and restoring supply chain stability, both of which could support economic growth and risk-on investing.
Falling Oil Prices and Inflation Hopes
A simultaneous drop in oil prices has also added to the bullish sentiment. Brent crude and West Texas Intermediate (WTI) fell by 0.35%, trading at $61 and $58, respectively. Lower oil prices suggest a potential slowdown in inflation good news ahead of the Fed’s next move.
Federal Reserve Decision Looms
Crypto and equity markets are now eyeing the Federal Reserve’s interest rate decision, expected later this week. While Donald Trump has advocated for rate cuts, most economists expect the Fed to keep rates steady at 4.50%.
Fed Chair Jerome Powell has consistently stated that rate reductions will depend on whether inflation trends back toward the 2.0% target. The Fed also plans to assess how new tariffs might influence inflation and economic growth before adjusting its stance.
Analysts believe that even a neutral or slightly dovish tone from Powell could provide “relief for investors,” potentially extending the crypto market rally.
Market Outlook
With recession odds in the U.S. dropping from 62% to 51% (according to Polymarket data), investor confidence appears to be rebounding. Historical trends suggest that Bitcoin, altcoins, and equities often perform well when the Fed pauses or cuts rates as seen during the 2020 pandemic recovery.
If trade tensions ease and inflation moderates, the current momentum in Stacks, Flare, Jasmy, and Dogecoin could carry into the coming weeks.
