The U.S. stock and crypto markets staged a comeback as renewed investor confidence fueled a broad risk-on rally. With Federal Reserve Governor Christopher Waller signaling that interest rate cuts may not arrive until 2026, markets moved higher, with Bitcoin and digital assets benefiting from the improved sentiment. Meanwhile, President Donald Trump mocked short sellers who positioned against U.S. equities as the recovery gained momentum.
Crypto market cap hits $2.2 trillion
The crypto market cap started to appreciate vertically after Federal Reserve Governor Christopher Waller stated that there won’t be interest rates for 2026. Speaking to Bloomberg, Waller stated: “The Fed will not lower interest rates for the purpose of helping finance the U.S. government’s fiscal deficit.”
With this statement, the crypto market started rising sharply. From a market capitalization of $2.14 trillion, the total value climbed to $2.2 trillion within a few hours of the announcement. The rally reflected renewed investor appetite for risk assets, with capital flowing back into Bitcoin and major altcoins.
Bitcoin funding rates turn postive
Futures markets also turned increasingly bullish as traders expanded long positions, signaling expectations that the upward momentum could continue if macroeconomic conditions remain favorable.
Even the market sentiment has also improved, as reflected in the Crypto Fear & Greed Index. It has rebounded sharply from 13, a level associated with extreme fear, to nearly the neutral zone. The shift suggests that investors are becoming less risk-averse and are gradually regaining confidence in the market.
Crypto market slowly gets rid of fear
While sentiment has yet to reach outright greed, the move away from extreme fear indicates that panic selling has eased, with traders increasingly willing to re-enter the market and take on risk as broader conditions improve.
Trump takes a shot at US stock sellers
As sentiment across the equities and broader risk-asset markets improved, some traders continued to bet against the rally by maintaining short positions. U.S. President Donald Trump responded to those bearish bets, remarking that the strength of the U.S. market would wipe out short sellers and suggesting that investors betting on further declines could face significant losses as the rally continues.
