Crypto Market Rebounds After Powell's Comments: Americas Daybook

The cryptocurrency market swiftly recovered from the downturn triggered by Federal Reserve Chair Jerome Powell's comments on Wednesday. Bitcoin bounced back to $118,500 from $116,000, with other major cryptocurrencies such as ether and XRP following suit. The CoinDesk 80 Index saw a 2.5% increase, outperforming the CoinDesk 20 Index, indicating a stronger recovery in smaller tokens. Despite the rebound, the market remained within recent price ranges, awaiting catalysts to break through resistance. According to Alex Kuptsikevich, chief market analyst at FxPro, the market still needs drivers to reach $120,000. The US White House report on digital assets lacked details that could inspire new buyers, causing the crypto market to follow macroeconomic and traditional finance trends. Analysts at Glassnode noted that bitcoin is displaying euphoria similar to that seen at previous all-time highs, citing studies based on unrealized profit as a percentage of market cap. The number of ether locked in the DeFi protocol Ethena has risen 27% to 2.23 million ETH, taking the dollar value of the assets locked to a record $8.6 billion. Invesco and Galaxy Digital filed a proposal with the SEC for a spot solana exchange-traded fund. The regulator approved in-kind redemptions for all BTC and ETH ETFs, unlocking major market efficiencies. The dollar continued to strengthen, with the Dollar Index nearing 100 for the first time since May 29.