These 4 Altcoins See Price Recovery After Early April Market Crash — What’s Driving the Rebound?

Jakarta, Pintu News – The cryptocurrency market has recently witnessed a recovery in the prices of several altcoins after a sharp decline. Altcoins such as Pepe Coin (PEPE), Solana (SOL), JasmyCoin (JASMY), and Bonk (BONK) recorded significant gains. Here’s an in-depth analysis of the factors that influenced this price spike!

US Trade Negotiations Optimism

First, there is renewed hope regarding trade negotiations conducted by the United States with several countries. Despite rising tensions with China, former President Trump has indicated progress in trade negotiations with Israel, Japan, and Vietnam.

These expectations created a positive sentiment among investors, which was also reflected in the stock market gains. The Dow Jones and S&P 500 indices, for example, jumped more than 2% each, erasing some of the losses incurred in the previous few days.

This rise has affected the stock market and the cryptocurrency market. Investors tend to seek out high-risk assets like altcoins when optimistic about global trade negotiations.

Read also: Libre Capital Adopts Chainlink Technology for Tokenized Fund Project!

Potential Interest Rate Cut by the Fed

Second, Wall Street analysts have increased their forecasts on the timing of the Federal Reserve’s (fed) interest rate cuts. In the last meeting, the Fed directed that there would be two rate cuts this year.

Jerome Powell, the Fed Chair, said he would not rush to make a decision. However, the market predicts that the Fed will make more cuts later this year. The CME FedWatch tool shows a 30% chance of a rate cut in May, up from less than 20% last week.

Goldman Sachs expects three cuts in the second half of the year. Analysts from JPMorgan also warned that cuts could come as soon as May. Morgan Stanley added that Trump’s tariffs could jeopardize economic growth prospects and prompt more cuts.

Also read: 5 Crypto RWAs that Steal the Show in April 2025!

Rebound as Dead Cat Bounce?

Third, the price increase may be part of the dead cat bounce phenomenon, which is a brief recovery in a declining market that resumes a downward trend.

This phenomenon is also known as a bull trap, where investors may be fooled by this temporary rise. In addition, Solana (SOL) also benefited after Janover, a small Wall Street firm, changed its management and started accumulating the coin.

Janover managed to raise $42 million from companies such as Pantera, Kraken, Arrington Capital, and The Norstar Group. Its goal is to become the MicroStrategy of Solana, one of the largest blockchains in the industry.

Conclusion

The price rise of altcoins such as Pepe Coin (PEPE), Solana (SOL), JasmyCoin (JASMY), and Bonk (BONK) was influenced by several key factors. Optimism in trade negotiations, potential interest rate cuts by the Fed, and the dead cat bounce phenomenon are some of them.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Crypto News. Here’s Why Altcoins Like Pepe, Solana, Jasmy, and Bonk Are Rising. Accessed on April 9, 2025
• Featured Image: Generated by Ai