Dogecoin, Solana Lead Gains as Crypto Markets Rebound
DOGE and SOL surged on Tuesday morning as the crypto market rallied, despite concerns over monetary policy and the macroeconomy.
Six of the top eight cryptocurrencies by market capitalization posted modest gains, with Dogecoin (DOGE) and Solana (SOL) leading the way with gains of 5.4% and 6.1%, respectively.
Bitcoin, Ethereum, BNB, and Cardano also gained. Bitcoin edged up 2.8%, Ethereum rose 3.9%, while BNB and Cardano gained 2.6% and 4.1%, respectively.
Notably, about $1.2 million in bearish Bitcoin options appeared on Monday evening, including 1,250 contracts for a $72,000 put option expiring on April 30.
Meanwhile, Solana continues to expand its influence in the DeFi market, with total value locked (TVL) rising to $18.5 billion, its highest level since December. Ethereum still leads at $55.8 billion, but Solana is closing the gap with a 35% growth rate for the week, compared to Ethereum's 12%.
Solana's meme coin, which exploded earlier in the year, has seen its trading volume drop below $90 million from $400 million in January, according to data from Dune Analytics.
Market sentiment improves
The signs of recovery suggest that market sentiment is becoming more optimistic in Q2, fueled by the complete absorption of concerns about the Fed's monetary policy and tariff decisions.
On the MYRIAD prediction platform, the number of people betting that the Crypto Fear and Greed Index will be below 35 on April 5 fell from 40% to 15% as of Tuesday morning. The majority predict the index will hover around 45-50, reflecting a more bullish sentiment.
Dominick John, an expert at Kronos Research, said: "If there are no unexpected macroeconomic events coming up this week, the bullish trend could continue."
Stock Markets and Macro Impact
Tech stocks in the S&P 500 just had their worst quarter in three years, but the recent recovery in Bitcoin and Ethereum could signal a positive signal for risk assets.
Macro factors, including Friday’s non-farm payrolls report and next week’s Fed Chair speech, will be key in determining the market’s next move.
If the labor data shows signs of weakness, the possibility of an earlier Fed rate cut could spur capital flows back into the crypto market, helping Bitcoin and major altcoins maintain their growth momentum.