Just one day after markets panicked over weak economic data, the mood has completely shifted. Bitcoin is back above $97,000, Ethereum and Solana are climbing fast, and other altcoins are also flashing green across the board. Strong earnings from Microsoft and Meta helped Wall Street shake off recession fears, and optimism is back.
Table of Contents
Crypto Goes Back – and Then Some
Bitcoin is up over 3% on the day, trading at its highest level in more than a month. It briefly dipped below $94,000 just 24 hours ago – but now it’s above $97,000, with traders already eyeing six figures again.
Ethereum bounced even harder, climbing 5% since yesterday. Solana surged 6%, and most of the top 100 coins are now in the green. Virtuals Protocol (VIRTUAL) is leading among major gainers, up over 28% in a single day. Walrus and Sonic (S) are both up more than 20%.
On the losing side, the biggest drop came from WorldCoin (WLD), down 4.5%. The only others with noticeable red candles today are gold-backed tokens like XAUt and PAXG, both of which fell around 2.5% as money rotates out of gold.
Wall Street Turns Around
On Wednesday, the Bureau of Economic Analysis reported that U.S. GDP contracted by 0.3% in the first quarter – the first such decline in three years. That sparked recession concerns and a sharp market pullback.
Despite the bad news, today Microsoft and Meta both crushed earnings expectations, sending their stocks up 9% and 6% respectively. The Nasdaq jumped more than 2.2%, while the S&P 500 rose 1.4% and the Dow notched another 300-point gain.
That was enough to reset the tone – and crypto responded instantly. Risk appetite is back, and Bitcoin seems to be feeding off the optimism in tech.
It also helps that there are fresh signs the U.S. and China may be talking again. Despite tough public posturing, Beijing has reportedly signaled that Washington is reaching out to restart trade negotiations. That’s not a deal – but it’s the first sign of thaw after weeks of tariff escalation.
Gold Drops
While crypto rallied, gold prices fell sharply. Spot gold dropped around 2.5% today and is now down more than 8% from recent highs. Some investors may be rotating from gold into assets like Bitcoin, particularly if they expect monetary policy to become more accommodative in the months ahead.
Still, despite the drop, gold remains above $3,200 – a level never reached before last month – showing that the market uncertainty remains very high.
What’s Next?
Although economic data continues to send mixed messages, the market reaction suggests investors are currently focused on the prospect of rate cuts and stabilization.
Crypto assets, which sold off yesterday on macro concerns, are benefiting from this shift in sentiment. All eyes will now be on upcoming data releases – particularly Friday’s U.S. jobs report – for the next potential catalyst.
Read also: How to Invest in Gold: From Coins and Bars to Crypto Tokens
