The cryptocurrency market underwent a strong resurgence, led by altcoins like Jasmy, Pepe, and Render

This positive trend was reflected in the crypto sector, where most tokens traded in the green. Some top performers included Core, Hyperliquid, Helium, Maker, and Ethena—each gaining more than 10%

The cryptocurrency market experienced a strong resurgence on Wednesday, led by altcoins such as Jasmy, Pepe, and Render. Their prices soared as the recent market negativity was quickly absorbed by new buyers, displaying the same optimism seen in global equity markets.

U.S. index futures were in the plus, with the Dow Jones rising by 600 points, S&P 500 gaining 60 points, and Nasdaq 100 advancing 135 points. In Asia, Japan’s Nikkei 225 soared by 5.4%, and India’s Nifty Index rose by 1%.

Crypto Tokens Join the Surge

This positive trend was evident in the crypto sector as well, with most tokens trading in the green. Among the top performers were Core, Hyperliquid, Helium, Maker, and Ethena, each registering gains of over 10%.

Solana ecosystem tokens also benefited from a unique development as Janover, a small Wall Street firm, announced its intention to invest in Solana and related projects, providing a strong fundamental reason for their price movement.

Geopolitical and Economic Drivers

The rally wasn’t purely technical and was largely driven by recent geopolitical comments. Donald Trump hinted at his willingness to negotiate trade deals with nations that lower tariffs and non-tariff barriers. He mentioned that Japanese officials were headed to the U.S. for talks and that a deal with Israel was in the works.

While U.S.-China tensions remain, many analysts believe a trade deal between the two superpowers is still on the table, possibly involving increased Chinese purchases of American goods.

Interest Rate Cut Speculation Boosts Market Mood

Another key factor behind the crypto and stock market rally is the growing belief that the Federal Reserve might cut interest rates soon. Goldman Sachs analysts have predicted that a U.S. recession could trigger up to three rate cuts this year.

Supporting this view, the 10-year U.S. government bond yield has fallen to 4.1%, compared to a high of 4.8% earlier in the year. Falling yields often indicate that markets are pricing in lower interest rates ahead.

Warning: Could This Be a Dead Cat Bounce?

However, some market analysts are cautioning that we might be witnessing a typical “dead cat bounce” – a short-term price bounce in the middle of a long-term downtrend.

These short-lived rallies seem to lure individual investors who attempt to catch the market at the bottom, only to have the price decline again.

An eToro analyst urged investors to focus on dollar cost averaging (DCA) rather than seeking short-term profits. He also suggested paying attention to high-cap moving averages to identify genuine breakouts.

“Although there has been a partial rebound of some tokens, they’re still well into bear market territory,” the analyst added.

These bounces are old news. Bitcoin, for instance, dropped in February to $76,585 before it bounced back to $89,000—to then drop again in what was a multi-month dead cat bounce.

Analysts caution that the same is occurring with altcoins like Jasmy, Pepe, and Render unless supported by stronger fundamentals.