The positive momentum was reflected across major altcoins, following Bitcoin’s price rebound, which helped ease market fears. The Bitcoin Fear and Greed Index surged to 46, signaling neutral sentiment and improved investor confidence.
Gold surged to an all-time high of $3,000 per ounce, strengthening its position as a traditional store of value. As Bitcoin is often seen as digital gold, speculations of a V-shaped BTC recovery gained traction across social media platforms, driving market optimism.
Major U.S. stock indices including the S&P 500, NASDAQ, and Dow Jones posted 2% gains, further reinforcing the bullish sentiment in the crypto space. Since President Donald Trump’s second inauguration, crypto markets have shown a stronger correlation with stock market trends.
The U.S. SEC’s proposal to classify XRP as a payment asset and its role in supporting a strategic Bitcoin reserve added a much-needed regulatory boost. This clarity has sparked renewed trust in the market and is seen as a key factor behind the current recovery.