Crypto Markets Staging Modest Recovery as Fed Rate Hike Fears Ease
After a sharp sell-off triggered by the Federal Reserve's hawkish turn last week, crypto markets are showing early signs of stabilization. Bitcoin (BTC) is hovering near $60,000 after hitting a 20-month low on Thursday, while some altcoins and DeFi tokens are outperforming. AAVE jumped 19% after CoinDesk reported Kraken is exploring a strategic investment, and Solana (SOL) gained nearly 10% as tokenized stock trading on its network hit a record $2.5 billion weekly volume. Consumer sentiment improving and inflation expectations cooling are helping ease pressure on risk assets. Markets are reassessing the probability of a Fed rate hike, with CME FedWatch now pricing a 77% chance of at least one hike by year-end, down from 90% last week. However, some signs of stress remain, such as Strategy's preferred stock STRC sliding further. On a positive note, all Bitcoin wallet cohorts have returned to accumulation for the first time this year, according to Glassnode data, suggesting broad-based buying by both retail and whale investors.
Key facts
- Bitcoin stabilizes near $60K after hitting 20-month low on Thursday.
- AAVE jumps 19% on report that Kraken may make a strategic investment.
- Solana hits record $2.5B in tokenized equity weekly transfer volume.
- Fed rate hike probability drops to 77% from 90% last week.
- All Bitcoin wallet cohorts return to accumulation for first time in 2025.