Crypto Market Rebounds as Consumer Confidence Slips
On Friday, Bitcoin and many altcoins saw a surge as investors took advantage of lower prices. Ripple (XRP) gained 4%, while chainlink (LINK), Bonk (BONK), and JasmyCoin (JASMY) climbed over 5%.
This rally came after a report revealed that U.S. consumer confidence hit a two-year low. Many consumers are concerned about Donald TrumpS tariffs and their affect on inflation. There are also worries about job cuts by Elon Musk’s Department of Government Efficiency, which could harm the economy.
Historically, risky assets perform well during recessions due to Federal Reserve intervention. The Fed often cuts interest rates and uses quantitative easing to stabilize the economy. Signs suggest the Fed may announce more rate cuts at its next meeting.
These expectations explain the surge in U.S. stocks on Friday. The Dow Jones Index rose by 625 points, while the S&P 500 and Nasdaq 100 gained 102 and 400 points, respectively. Gold also hit a record high of $3,000.
Altcoins like XRP, LINK, BONK, and JASMY also rose as the U.S. seemed to avoid a government shutdown. Senator Chuck Schumer argued in a New York Times piece that a shutdown would benefit Musk and Trump.
However, some analysts warn that this recovery could be a dead cat bounce—a temporary rebound during a broader downtrend.
