The crypto market sentiment is improving, and market participants are more comfortable getting altcoin exposure. As usual during such shifts towards increased risk, ETH and BNB outperformed BTC with 12% and 16% gains over the past seven days.
The recent crypto market rally is mainly driven by increased macro-optimism. Last week’s FOMC meeting ended with the Fed hiking its funds rate by 75bps. The stock market rallied following the meeting as the market perceived the Fed as increasingly likely to start cutting rates earlier than initially expected. Over the past seven days, the S&P 500 climbed 5% and Nasdaq by 6%. Bitcoin’s 9% increase is then expected, given its high correlation with the stock market.