Crypto markets rallied after Federal Reserve Chair Jerome Powell’s speech, with Ethereum closing in on its all-time high and a broad surge across altcoins and meme tokens. Bitcoin saw a modest pullback as markets weighed a hawkish tone and the prospect of higher interest rates, while spot Bitcoin ETFs extended a five-day losing streak amid renewed profit-taking.
Institutional commentary added to the momentum: JP Morgan flagged the potential for “meteoric” growth in Ether, and analyst Arthur Hayes predicted an ambitious $20,000 ETH target this cycle. That optimism sits alongside a more cautious market microstructure signal: around 27% of digital-asset trusts (DATs) now trade with a market NAV (mNAV) below 1, indicating discounts and liquidity strains for some institutional products.
Regulatory and industry developments also shaped sentiment. The CFTC launched a new Crypto Sprint Initiative aimed at accelerating oversight and coordination, while the US Department of Justice said it would avoid targeting developers who lack criminal intent — a stance market participants said could reduce legal tail risks for innovation.
Product and regional moves kept headlines busy: MetaMask announced a new stablecoin, mUSD, and the European Union accelerated plans to support euro-denominated stablecoins. In Asia, Japan’s SBI expanded into tokenised stock trading and announced a partnership with Ripple to issue RLUSD, while UBS reported that some Chinese family offices are allocating about 5% of portfolios to crypto.
Policy shifts in other markets included India considering changes to crypto taxation and Australia ordering an audit of Binance operations — developments that could influence flows and compliance costs globally.
What this means for traders and investors: the market is being driven by a mix of macro signals, bullish institutional narratives, and fast-moving regulatory news. Price forecasts like $20k ETH highlight upside potential but carry significant uncertainty.
Risk note: Crypto remains volatile; market moves can reverse quickly and regulatory outcomes are unpredictable. Investors should perform due diligence and consider risk tolerance before taking positions.
Source: Decrypt. Read the original coverage for full details.