ETH climbed 3.5%, while SOL and XRP surged 5%.
The cryptocurrency market continued to rally on Tuesday after Federal Reserve Chair Jerome Powell made dovish remarks regarding future monetary policy the previous day.
At the time of writing, Bitcoin (BTC) is trading at around $106,350, up 2% over the past 24 hours. Ethereum (ETH) increased by 3.5% to $2,625. XRP jumped nearly 5% to $2.27 while Solana (SOL) climbed 5.5% to around $161, per CoinGecko.
The total cryptocurrency market capitalization remained flat on the day at $3.46 trillion. Leveraged liquidations reached $208 million in the same time frame, according to CoinGlass. ETH accounted for approximately $54 million, followed by BTC with around $50 million.
U.S. spot Bitcoin exchange-traded funds (ETFs) recorded around $268 million in outflows on June 2. Ethereum ETFs, on the other hand, attracted $78 million in inflows, according to SoSoValue.
This shift comes as BlackRock has deposited over $560 million of BTC to Coinbase and purchased $95 million worth of ETH. Experts told The Defiant earlier today that this move could signal an institutional pivot towards Ethereum.
Fed’s Dovish Stance
On Monday, Fed Chair Powell delivered a speech that signaled a potential shift in U.S. monetary policy. He also stressed the importance of global economic trends and hinted at more dollar volatility.
“It remains critical that the Fed understand the policies and practices of other governments and central banks, and their implications for the U.S. economy and financial markets,” Powell said in the speech. “Understanding global trade and capital movements has only grown in importance since 1950, as we saw during the pandemic.”
“The Fed’s dovish comments have temporarily boosted market risk appetite, but increased dollar volatility may disrupt capital allocation,” Bitunix analysts said in a note. “Bitcoin’s short-term key level is at $105,000; if it can hold above this level, it may continue to rise.”
The analysts added that if the U.S. dollar weakens further, BTC could approach its all-time high above $110,000. Other experts also explained that volatility could stem from tariff-related developments by President Donald Trump.
Meanwhile, Dr. Kirill Kretov at CoinPanel noted that he doesn’t see any “meaningful uptrend across the crypto market.”
“Looking at daily charts for BTC, ETH, SOL, DOGE, XRP, and BNB, what I see is continued controlled volatility rather than sustained upward momentum,” he added.
