Bitcoin and most altcoins started the month well, with the total market cap of all coins jumping to over $3 trillion.
JasmyCoin (JASMY) price jumped by 6.2%, while Chainlink (LINK), Dogecoin (DOGE), and Pi Network (PI) were up by over 5%.
These tokens jumped as Bitcoin (BTC) ended its two-week consolidation and broke above the key resistance level at $97,000 for the first time since February. Historically, altcoins tend to perform well when Bitcoin is rising.
Analysts are optimistic that Bitcoin will continue to soar. Ark Invest has estimated that the coin will reach $2.4 million by 2024, while Standard Chartered analysts predict it will surge to $120,000 by the end of the year. In an emailed statement to crypto.news, Joe Burnett, an analyst at Unchained, estimated that it could hit $250,000, saying:
“I definitely would not be surprised to see Bitcoin reach $200,000, or $250,000 this year. If the price gets going soon and breaks a new all-time high, I think things could get really crazy, and actually go parabolic… all the narratives are set, the macro conditions are great.”
Altcoins jumped as the US stock market soared
Altcoins also moved higher as the US stock market rallied. The Dow Jones, S&P 500, and Nasdaq 100 indices all rose by over 1%, continuing a rally that started a period of extreme selling pressure following President Trump’s “Liberation Day” tariff decleration.
These assets are rising as market participants predict that Donald Trump will intervene and begin unwinding tariffs following the latest US GDP data. The report showed that the economy contracted in the first quarter as imports surged.
Additionally, the stock market has underperformed compared to other presidents at the same time in their presidencies. His performance was the worst since 1974 when Gerald Ford became president. Therefore, he might decide to start negotiations with China to boost the stock market.
The Federal Reserve may also intervene and start cutting interest rates to prevent a recession. The odds of a 25-basis-point cut in the June meeting on Polymarket have risen to 47% and are now higher than the odds of no change.
Bitcoin and altcoins like Jasmy, Chainlink, Dogecoin, and Pi Network often do well when the Federal Reserve is cutting interest rates. A good example is how they all surged during the pandemic and then slumped in 2022 as the bank started slashing interest rates.
