Crypto Rebounds as Geopolitical Tensions Ease
Ether reclaimed the $2,000 threshold while Solana led altcoin gains, mirroring a risk-on rally across assets after President Trump signaled de-escalation with Iran. The crypto rebound coincided with a 5% drop in oil prices and rising equity futures, underscoring digital assets' growing sensitivity to macro catalysts.
Bitcoin's 90-day correlation with the S&P 500 hit 0.78 this week - near record highs - as institutional flows blurred traditional market boundaries. Crypto investment products absorbed $619 million in weekly inflows despite volatility, with BTC funds capturing 85% of the total.
All eyes now turn to the March FOMC meeting. Hawkish signals could pressure high-beta tokens, though some traders are betting the Fed will temper rhetoric given fragile risk sentiment.
